Documents Ferrando, Annalisa 2 results

"In this paper, we present a set of specific measures to quantify the state and evolution of financial integration in the euro area. Five key markets are considered, namely the money, corporate-bond, government-bond, credit, and equity markets. Building upon the law of one price, we have developed two types of indicators that can be broadly categorized as price-based and news-based measures. We have complemented these measures by a number of quantity-based indicators, mainly related to the evolution of the home bias. Results indicate that the unsecured money market is fully integrated, while integration is reasonably high in the government- and corporate-bond markets, as well as in the equity markets. The credit market is among the least integrated, especially in the short-term segment."

"In a pilot round of the Survey on the Access to Finance of Enterprises (SAFE), conducted between 25 May and 26 June 2023, euro area firms were asked about climate change. Firms attach substantial importance to the potential negative impact from the physical risks of climate change. However, they are even more concerned about transition risks. Compared with physical risks, stricter climate standards provide a stronger incentive for firms to invest in climate change mitigation. Nonetheless, high financing costs and insufficient public subsidies are important obstacles to green investment. The results of the survey highlight the important role played by public loan guarantees and private sector funds in directing resources towards the greening of the economy."