Written for undergraduate and graduate students of finance, economics and business, this textbook provides a fresh analysis of the European financial system. Combining theory, empirical data and policy, it examines and explains financial markets, financial infrastructures, financial institutions, and challenges in the domain of financial supervision and competition policy. Key features: Cf¢ Designed specifically for courses on European financial integration Cf¢ Clear signposting and presentation of text with learning objectives, boxes for key concepts and theories, chapter overviews and suggestions for further reading Cf¢ Broad coverage of European financial system CfI markets, infrastructure and institutions Cf¢ Explains the ongoing process of financial integration, in particular the impact of the euro Cf¢ Examines financial systems of new member states Cf¢ Uses up-to-date European data throughout Companion website will be available with exercises and freely downloadable solutions.