ABSTRACT
This chapter examines the developments of the financial structures in the euro area over the 1995-2002 period. It compares the financial structures across the euro area member countries as well as vis-a-vis the financial structures of the two other major macro-regions. The chapter provides an overview of the distribution of financial assets and liabilities among euro area resident sectors. It describes the financial intermediaries of the euro area. The chapter presents the structures and developments of the bond and stock markets. It describes financing of the non-financial sectors of the euro area. The chapter explains that financial intermediaries are divided into three main groups: monetary financial institutions, which mainly consist of credit institutions and money market funds; insurance corporations and pension funds; and finally other financial intermediaries, which mainly consist of investment funds. Non-financial corporations in the euro area and in Japan resort to loans to a much larger extent than United States corporations.
