BIS Review 41/2004  1  Before such an audience I do not have to recall in detail that the benefits of financial integration are very numerous. But similar to many public goods, one might not always be directly aware of the benefits although they are very substantial.
Financial integration results in deeper and more liquid markets, more efficiency and a better allocation of risk. It further facilitates the allocation of capital to the best investment opportunities, leads to lower prices for consumers and raises the economy’s growth potential.