Euro credit helps the flow of capital between countries and the financing of investments at home and abroad. A major function of banks is matching surplus units (who deposit at the bank) with deficit units (who borrow from the bank). Being able to do this internationally, both across borders and across currencies improves both liquidity and efficiency in the markets for financing.

Banks may also engage in syndicated loans in the euro credit market, where a loan is made by a group (syndicate) of banks. Syndicated loans reduce the risk of borrower default for each individual bank loaning funds and are often found where the size of the loan is too big for one bank to do by itself. Often, the banks in a syndicate will be headquartered in different countries but lending in one currency-an example of how the euro credit market can work to improve the flow of funds internationally.