Draghi discusses fragmentation of Europe's financial market

03/19/2013 | Reuters

European Central Bank President Mario Draghi says the central bank's single monetary policy has become fragmented because of fragmentation in the financial market. "As you will be aware, the disruptive effects of severe fragmentation in the single financial market have tangible consequences, such as diverging funding costs for banks," Draghi said. "This has resulted in the uneven transmission of our interest-rate reductions to firms and households across the euro area. For this reason, the ECB has had to identify the most effective policy tools for repairing these disruptions, while remaining within its mandate."

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