Unlike convergence in price-based indicators, quantity-based indicators point to a slower pace of financial integration: Slide 5 shows that outstanding cross-border loans to the non-financial sector in other euro area countries increased by only 3 percentage points over the last decade.
First, the process of issuing new banking licenses has begun, with the articulation of core issues and the pros and cons associated with ownership and capital criteria. A public debate and consultation process is now under way. Second, an effort to co-ordinate action on the remaining barriers to the development of the bond market is in motion.