Developing and integrating markets for equity capital through the removal of impediments to efficient, non-distorted market outcomes can play an important role in this regard (Deutsche Bundesbank 2015b). Integrated capital markets contribute to risk sharing among investors, which can generate welfare gains. In integrated markets, local risks are shared amongst investors from different regions.
With the benefit of this support, European banks in turn have increased their holdings of sovereign debt, contributing to lower borrowing costs for some countries. Second, euro-area leaders, the Greek government, and private-sector holders of Greek debt are taking steps to put Greece on a more sustainable fiscal path.