The remaining interest rate differentials reflect differences in the degree of credit risk in individual countries as well as in the liquidity of specific instruments. With regard to banking services, business with major corporate customers has likewise become very well integrated.
To take the example of syndicated loans, there has been an increase in the proportion of financing that is arranged by a foreign bank, from the perspective of the borrower. Integration is least developed in retail banking. Some experts complain about “fragmentation” in the retail banking business. My advice would be to take a more relaxed view.