First, financial integration is a key factor in the modernisation of the financial system: The integration process fosters competition, the expansion of markets and intermediation, thereby leading to further financial modernisation. Second, as a central banker, I take a natural interest in financial integration because a well-integrated financial system contributes to a smooth and effective implementation of monetary policy throughout the euro area.
Another reason is that firms are finding it difficult to make price cuts that would lead to a further deterioration in their profits, given the current public health necessity of limiting customer numbers to avoid crowding.