Publication

This study provides new evidence on the emergence of a single eurozone retail banking market, with particular reference to consumer credit, and indicates that there is limited evidence of an integrated retail banking market prior to 1 January 1999. It identifies three possible driving forces of financial integration: cross-border borrowing and lending, a competitive banking environment and a uniform pass-through of interest rate changes on to lending rates. The authors note that the single currency has the potential to complete the single market.