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

European Corporate Governance Institute (ECGI) - Law Working Paper No. 240/2014

Ghent University Financial Law Institute Working Paper No. 2014-01

85 Pages Posted: 1 Mar 2014 Last revised: 27 Apr 2015

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: February 21, 2014

Abstract

The Regulation on the Single Supervisory Mechanism mandates the European Central Bank to exercise prudential supervision on the most significant banks located in the Euro area, whether directly by the Bank’s own services, or indirectly by the national prudential supervisors but under the general guidance of the ECB. 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 Systems. 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 (February 21, 2014). European Corporate Governance Institute (ECGI) - Law Working Paper No. 240/2014. Available at SSRN: https://ssrn.com/abstract=2397800 or http://dx.doi.org/10.2139/ssrn.2397800

Eddy O. Wymeersch (Contact Author)

Ghent University - Financial Law Institute ( email )

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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 )

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Belgium

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