4 For the ECB, a market – for a given set of financial instruments or services – is integrated when all potential participants in that market are i) subject to a single set of rules 5 when they decide to deal with those financial instruments or services, ii) have equal access to this set of financial instruments or services and iii) are treated equally when they operate in the market.
This is seen most clearly in the capital markets, where investors are moving out of equities into bonds, and some banks are becoming more cautious in their lending behaviour. On the other hand, labour markets around the world have so far shown very little deterioration. The second risk relates to the domestic situation.