- 3 March 2020
- FINANCIAL INTEGRATION AND STRUCTURE ARTICLEHow could a common safe asset contribute to financial stability and financial integration in the banking union?Financial Integration and Structure in the Euro Area 2020Details
- This special feature discusses how a common sovereign safe asset in the euro area could benefit financial stability by fostering financial integration and development, and by changing the structure of asset markets. The discussion focuses on the potential benefits of a well-designed common safe asset that has certain desirable characteristics, while it does not provide an assessment of specific design options. This special feature should be viewed as part of a broader discussion on how to complete the banking union, which also includes considerations regarding a European deposit insurance scheme and changing the regulatory treatment of sovereign exposures.