On the single supervisory mechanism
Abstract
With the so-called banking union, the EU is currently pursuing the most important project in terms of European integration since the introduction of the euro in 1999. The centrepiece of the banking union is the ‘Single Supervisory Mechanism’ (SSM), a supranational banking supervisory body embedded into the organisational structure of the European Central Bank. If implemented properly, the banking union could contribute significantly to breaking the bank–sovereign nexus within the euro area, to reconciling control and liability with respect to cross-border banking supervision in the EU and to accomplishing the European internal market, strengthening the competitiveness of large complex European banking groups. However, there are some shortcomings in the legal and political construction chosen for the SSM, possibly reversing some of the desired positive effects.
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Author's Biography
Thomas M. Dietz is a professor at the University of Applied Sciences of Deutsche Bundesbank in Hachenburg, Germany. Thomas is educating Bundesbank personnel in banking supervision and financial stability issues and also teaches matters of European integration. He has done various research work on Basel III, in particular on the new quantitative liquidity regime, but also on matters of European governance such as the new European supervisory framework. Before joining Bundesbank University in 2008, Thomas was a senior banking supervisor at the Federal Financial Supervisory Authority (BaFin) in Germany. From September 2004 to October 2006 he was seconded to the Committee of European Banking Supervisors, the predecessor of the London-based European Banking Authority.
Citation
Dietz, Thomas M. (2014, June 1). On the single supervisory mechanism. In the Journal of Risk Management in Financial Institutions, Volume 7, Issue 3. https://doi.org/10.69554/GHOA6238.
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