摘要：To measure integration, economic theory provides a clear background regarding
price convergence: the law of one price. This paper is the first test of this
law in euro-area retail banking. Since the law can be verified only on similar
assets, we use recent harmonized data and a methodology that renders banking
products homogeneous across countries, controlling for national factors.
Econometric results signal that rates differ, and that markets are still
segmented, because banking services are differentiated. Since supply factors
play a driving role, there is room for improved integration. Moreover, where
bank customers are stronger, rates are more homogeneous.
