Regional versus Global Integration of Eurozone Retail Banking Markets: Understanding the Recent Evidence from Price-Based Integration Measures

S. Kleimeier, H. Sander

Research output: Contribution to journalArticleAcademicpeer-review

5 Citations (Scopus)

Abstract

We investigate the integration of euro-zone retail banking markets by comparing convergence and cointegration measures. As an innovation to the literature convergence measures are exposed to a difference-in-differences methodology which allows both, identifying the impact of the single currency and benchmarking euro zone-specific from global integration effects. We find that euro-zone convergence has largely been a result of integrating wholesale markets after the elimination of exchange rate risks. After 1999 integration is mainly observed for a restricted “convergence club” excluding germany, ireland and belgium. Moreover, convergence is at least partly a global rather than euro zone-specific process.
Original languageEnglish
Pages (from-to)353-368
Number of pages16
JournalQuarterly Review of Economics and Finance
Volume46
Issue number3
DOIs
Publication statusPublished - 1 Jan 2006

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