The Single Supervisory Mechanism or 'SSM', Part One of the Banking Union

National Bank of Belgium Working Paper No. 255

84 Pages Posted: 22 Apr 2014

See all articles by Eddy Wymeersch

Eddy Wymeersch

Ghent University - Financial Law Institute; ECGI

Multiple version iconThere are 3 versions of this paper

Date Written: April 1, 2014

Abstract

The Regulation on the Single Supervisory Mechanism mandates the European Central Bank to exercise prudential supervision on the banks located in the Euro area, whether directly by the Bank’s own services for the significant banks, or indirectly by the national prudential supervisors but under the general guidance of the ECB for the less significant banks. The paper gives a detailed analysis of the new regime, its scope, the consequences for the existing supervisory systems, especially the home-host attribution of competences and the cooperation between the ECB and the national supervisors, the consequences for the non-euro Member States and for the third country jurisdictions. This regime is likely to substantially modify the existing supervisory landscape. It is the first step towards the Banking Union and is to be followed by legislative instruments on Bank Recovery and Resolution Directive, the Regulations on a Single Resolution Mechanism and on Deposit Guarantee Schemes. These three measures should allow dealing with defaulting banks without calling on the taxpayers.

Keywords: Regulation Single Supervisory Mechanism, European Central Bank, European Banking Authority, banking prudential supervision, home-host, banking crisis

JEL Classification: G20, G28, G38

Suggested Citation

Wymeersch, Eddy O., The Single Supervisory Mechanism or 'SSM', Part One of the Banking Union (April 1, 2014). National Bank of Belgium Working Paper No. 255, Available at SSRN: https://ssrn.com/abstract=2427577 or http://dx.doi.org/10.2139/ssrn.2427577

Eddy O. Wymeersch (Contact Author)

Ghent University - Financial Law Institute ( email )

Universiteitstraat 4
Gent, B-9000
Belgium
+32 9 264 68 27 (Phone)
+32 9 264 68 55 (Fax)

HOME PAGE: http://www.law.ugent.be/fli

ECGI ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
840
Abstract Views
3,580
Rank
11,430
PlumX Metrics