The Phenomenon of Financial Integration and the Probable Issues in Financial Alterations Related to EU

Abstract

The financial integration concept is a very important main key, as an integration phenomenon, that haven taken place in EU, and effect on the member countries' financial reform process for a long time. In this study, we aim to put forth the financial relations between financial alterations and recent developments, which include along the capital movements especially together with the last full member countries. Therefore, we have interrogated two cross-examine related to financial integration fact. That is first of their financial market standards affecting financial harmonization adjustment process. Secondly, the financial risk-sharing and prudential policies' effect that take place in applications related to integration process. In addition to, the price-based policies have been emphasized along the occurred global risks which make sense cross-country dispersion of bond yields among banks in the EU. However, since the process of financial integration represents a process that aims to harmonize national debt limits between member states, it also presents a process where the money market transactions are also questioned among banks on a global level. In this respect, the global alignment of financial markets emerges as the objectives of joint financial change as well as the alignment of macro financial indicators for EU countries, and it appears that this fact makes corporate integrations inevitable among member countries.