In a new column on VoxEU entitled

Banking integration in the EMU — let’s get real

Mathias Hoffmann, Egor Masolv, Bent Sorensen and Iryna Stewen argue  that dependence on domestic banks reduces risk-sharing in a crisis, reducing GDP growth in affected country-sectors. Benefits from banking integration are only robust to global shocks if banking integration takes the form of cross-border lending to firms and households.