Conceptual elements of the ECB’s monitoring framework for financial integration To start with, let me explain how the ECB defines the concept of European financial integration. An obvious measure of financial integration is to check the validity of the law of one price within the euro area.
Moreover, the ECB will be able at any time to take over the direct supervision of smaller credit institutions. Current plans envisage that common supervision will commence in the second half of next year. However, common banking supervision is only one element of a true banking union. In parallel, we also need a common resolution mechanism.