By far the most important source of risk sharing are cross-regional and cross-border asset holdings, that is, various forms of equity holdings and firm ownership claims. Financial integration in Europe was expected to be greatly facilitated by the introduction of the common currency. However, in the years since the introduction of the euro, progress in capital markets and credit markets integration has been uneven.
At present, the cross-border ownership of assets in the EU is still limited, despite the fact that the single currency in the euro area reduced some of the information barriers and transaction costs. Corporate financing through bond and equity markets is much more limited in Europe too, with banks being the undisputed primary source of funding for firms.