The significant growth of the euro corporate bond market also provides evidence of integration and widens the range of potential investors to which firms have access. National bonds and equity market returns exhibit closer co-movements than they did prior to the introduction of the euro.
The main area where financial integration has lagged is that of retail banking where, in spite of an increase in cross-border mergers and acquisitions in recent years, cross-border activity remains relatively limited. Forces for further integration will continue, as market participants increasingly exploit the new environment of monetary union.