Moreover, cross-border country and cross-sector dispersions in euro area equity returns have risen since the second half of 2007. Both examples indicate that national factors in market dynamics and asset pricing have regained importance in a time of financial market tensions. But the scale on which this has happened is still small in comparison with the major developments of the past ten years.
As already noted, financial integration in the euro area has not proceeded at the same pace across all sectors and markets. Integration of the retail banking markets, for instance, has remained limited, reflecting the persistence of legal, institutional and cultural differences.