The Research On The Issue Of European Union Financial Integration

In pace with the deepening of the European integration process, a growing trend towards financial market integration has emerged in the EU, especially in the euro area. This thesis, which researches on the issue of European financial integration and analyzes its enlightening effect on China, can generally be divided into five parts:Chapterâ… introduces the theoretical knowledge of financial integration. This chapter states the definition and characteristics of financial integration, as well as the boundaries of financial integration associated with the regions and the currency in the European context. Then, three drivers of financial integration, namely, market force, collective action and public action, are emphasized. Finally, the benefits of financial integration, i.e. risk sharing, improved capital allocation, and economic growth, are outlined.Chapter II describes the current state of European financial integration. The state of European financial integration can be observed through the European monetary market integration, the bond market integration, the equity market integration, and the banking integration. This chapter uses price indicators and the quantitative indicators, and cites the analysis of European economists, to illustrate the state of each financial market. The conclusions are drawn as follows: Currently, the European financial integration has made remarkable progress, but the degree of...