Concerning the first aspect, financial integration in the euro area facilitates a better sharing and diversification of the risk of potential shocks, because it will allow, for example, economic agents from one region to invest more easily in other regions of the euro area.
Economic agents will also be able to choose payment service providers from different regions, or choose providers that have back-up facilities in different regions. Financial integration is therefore relevant for the stability of the financial system, as it improves the financial system’s ability to adsorb adverse disturbances.