Initially, it may appear that taking banking to the sections constituting “the bottom of the pyramid” may not be profitable but as various study conducted reveals that even the relatively low margins on high volumes can be a profitable proposition. Banks therefore need to work out their appropriate business delivery models and financial products to cater to the needs of the people.
This implies that, following the introduction of the euro, euro area investors have significantly reallocated their equity portfolio from domestic holdings to holdings elsewhere within the euro area. As a remaining challenge to the integration of euro area securities markets, I note that the euro area securities clearing and settlement infrastructure underpinning both bond and equity markets is not yet sufficiently integrated.