Governance of the Single Supervisory Mechanism: Some Reflections
29 Pages Posted: 25 Jan 2014
Date Written: January 1, 2014
Since the inception of the Euro, European policy makers have been increasingly recognizing the ‘efficiency’ gaps in EU financial supervision against a background of a decentralized institutional architecture for regulation, supervision and financial stability. Recognition of this gap had led to tangible efforts to capture some of the potential efficiency gains through legally binding mechanisms and policy coordination mechanisms (i.e. European System of Financial Supervisors – ESFS). That ongoing iterative process of cooperation and coordination can be interpreted as having already internalized some of the EU´s potential negative externalities of cross border banking (Nieto and Schinasi, 2007).
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