Are certain segments of euro area financial markets less developed than others and, if so, why? The discussion of this issue should be precursored with the observation that, in the euro area, financial markets rely more on bank credit than in the United States or the United Kingdom.
By contrast, debt securities and shares represent a considerably smaller proportion of GDP in the euro area than they do in the United States or the United Kingdom. Hence, and notwithstanding the processes of disintermediation and securitisation currently under way, the financial structure of the euro area can be characterised as being more bank-oriented than security or market-oriented.