Pros and cons of financial integration In response to the crisis, a debate in policy and academic circles on how to enhance the resilience of the global financial system has gained momentum, while retaining the benefits of free, integrated, and competitive financial markets.
Indeed, it is important not to forget that financial integration can potentially yield many benefits to our economies, particularly by rendering them more stable and resilient. Indeed, one key channel through which financial integration improves the resilience of the global financial system is risk sharing.