Chart 1 Price-based and quantity-based composite indicators of financial integration (Quarterly data; price-based indicator: first quarter of 1995 to fourth quarter of 2020; quantity-based indicator: first quarter of 1999 to third quarter of 2020)  Sources: ECB and ECB calculations Notes: The price-based composite indicator aggregates ten indicators for money, bond, equity and retail banking markets, while the quantity-based composite indicator aggregates five indicators for the same market segments except retail banking. The indicators are bounded between zero (full fragmentation) and one (full integration). Increases in the indicators signal greater financial integration. From January 2018 onwards the behaviour of the pricebased indicator may have changed due to the transition in the money market component from EONIA to the € OMT stands for Outright Monetary Transactions.. For a detailed description of the indicators and their input data, see Hoffmann, P., Kremer, M. and Zaharia, S. (2019), “Financial integration in Europe through the lens of composite indicators”, Working Paper Series, No 2319, ECB, September. The challenges of climate change This higher vulnerability occurs at a time when the financial system faces emerging risks related to climate change – a common shock faced by us all, albeit one with potentially asymmetric impacts on different sectors and regions of the euro area. [5] On aggregate, euro area bank exposures to the most carbon-intensive sectors, such as mining, are relatively contained. However, the concentration of carbon-intensive industries and activities can differ across countries.
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