Fragmentation of the financial markets has negative implications in particular for the financial system’s overall capacity to absorb shocks, since it reduces the opportunities for risk-sharing and diversification among economic agents and limits the depth and liquidity of financial markets. Therefore, from the perspective of both financial efficiency and financial stability, financial integration is a key issue.
This prize has high reputation at the ECB where we believe that international cooperation and openness are crucial for improving people’s standards of living. Some of you might recall that the prize was awarded in 2011 to former ECB President Jean-Claude Trichet.