Still, financial markets across European countries display a significant degree of heterogeneity in terms of financial institutions, capital flows, and legal frameworks. 2.1 Financial structures and capital flows Despite differences in financial systems across European countries, bank finance continues to provide a higher share to the financing of firms than, for example, in the United States.
In the Euro Area, bank assets have a level equivalent to 300% of GDP, compared to 85% in the US. Equity shares listed on stock markets stand at 68% of GDP, below the United States’ 170% of GDP.