Fit and Proper Assessments within the Single Supervisory Mechanism

Posted: 5 Mar 2019

See all articles by Danny Busch

Danny Busch

Radboud University Nijmegen - Institute for Financial Law (IFR)

Annick Teubner


Date Written: March 5, 2019


A fit and proper management body and fit and proper key function holders are key drivers of good governance. The banks are primary responsible for ensuring this, while the assessment by the ECB and national competent authorities have the aim to ensure that banks comply with the requirements regarding robust governance arrangements and the suitability requirements. Over the past years convergence of fit and proper assessments within the SSM has been achieved on the one hand through harmonisation of the rules laid down in CRD IV and the EBA Guidelines on suitability, and on the other hand through consistent application of these rules. Nevertheless, there is still a wide variety of national practices regarding fit and proper assessments, due to the fact that there are limits to convergence in this area. These relate to:

(1) the transposition of and the level of harmonisation by CRD IV;

(2) the limits to harmonisation through the EBA guidelines on suitability; and

(3) the requirement for the ECB to apply national law.

With every step towards more harmonisation and consistency, the existing national variations will become more obvious and underline the need for more harmonisation.

Keywords: fit and proper testing, European Central Bank, Single Supervisory Mechanism, European Banking Union, CRD IV, EBA Guidelines on suitability, harmonisation, limits to convergence

JEL Classification: G01, G21

Suggested Citation

Busch, Danny and Teubner, Annick, Fit and Proper Assessments within the Single Supervisory Mechanism (March 5, 2019). European Banking Institute Working Paper Series 2019 – no. 34, Available at SSRN: or

Danny Busch (Contact Author)

Radboud University Nijmegen - Institute for Financial Law (IFR) ( email )


Annick Teubner

Independent ( email )

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