The Role of the ECB in the Supervision of Credit Institutions
Luis M. Hinojosa-Martínez, 'The Role of the ECB in the Supervision of Credit Institutions', in Luis Hinojosa-Martínez/ José Mª Beneyto (Eds.), European Banking Union: The New Regime (Kluwer 2015)
19 Pages Posted: 20 Mar 2015 Last revised: 27 Mar 2015
After summarizing the broad lines of the new Single Supervisory Mechanism (SSM) for credit institutions in the European Union, the author deals in his contribution with some specific issues that have generated controversy, such as the criteria to select the credit institutions supervised by the ECB, the decision-making procedure in the ECB and the position of non-euro member states, the separation of supervisory and monetary functions, the relationship between the ECB and the national competent authorities, the structure of democratic accountability in the new supervisory system, and the distribution of normative functions between the EBA, the ECB and the Commission. The author describes the decision-making procedure for supervisory matters within the ECB as a balanced solution that was legally necessary to respect the assignment of powers within the ECB made by the Treaty and detects potential problems when the ECB implements national legislation or becomes involved in judicial proceedings before national judges. In any case, he argues that the consistency of the SSM, especially in the Eurozone, seems assured by its hierarchical structure and by the scope of the ECB’s mandate and also affirms that the standard of democratic accountability of the SSM is comparable to or even improves the models existing at national level.
Keywords: European Central Bank, ECB, Supervision
JEL Classification: D73, E42, F36, G18, G21, G38, K23
Suggested Citation: Suggested Citation