The benefits of financial risk-sharing for the euro area One of the main reasons why financial integration is beneficial is that integrated financial markets help support constant consumption growth “in good and in bad states” of the world. 1 Consumption smoothing between countries, also known as risk-sharing, can increase welfare by hedging consumption against country-specific risks.
In light of this history, the GLB Act specifically permits banks to effect transactions in a trustee capacity, and to effect transactions in a fiduciary capacity in any department of the bank that is regularly examined by bank examiners for compliance with fiduciary principles.