2 The broad finding of this analysis is that the euro has generally acted as a major catalyst for the integration of all the financial markets. The degree of integration differs between market segments and integration is more advanced in those market segments that are closer to the single monetary policy, above all the money market. Let me mention some specific results.
The unsecured euro interbank deposit market was almost perfectly integrated right at the start of 1999. The cross-country standard deviation of the average overnight lending rates among euro area countries was as low as 3 basis points in early 1999 and has since decreased to just 1 basis point. For comparison purposes, let me mention that in January 1998, i.e.