scholarly journals The Single Supervisory Mechanism in the context of a European Banking Union under construction: bridging the Euro debt crisis with defences designed for the future

2018 ◽  
Vol 4 (1) ◽  
pp. 67-77
Author(s):  
Rui do Carmo
Keyword(s):  
Debt Crisis ◽  
Banking Union ◽  
Euro Crisis ◽  
European Monetary ◽  
Single Supervisory Mechanism ◽  
European Banking Union ◽  
The Past ◽  
European Banking ◽  
Set Up ◽  
Under Construction

Set up in the past few years under the shadow of the Euro debt crisis, the European Banking Union (EBU) has been taking its first steps, aiming to prevent the dreaded repetition of the recent shortcomings of the several components of the European Monetary Union (EMU). By revisiting some specific events that led to the Euro crisis, this paper seeks to provide some insights on the understanding of the set-up of the Single Supervisory Mechanism (SSM), in the context of the broader conjunction of the several instruments put forward to provide the EBU with the resilience to prevent future crises. The text provides a brief background of the events that triggered the need for setting up the EBU, followed by an overview of its different constitutive elements and, finally, a critical analysis of the most prominent aspects of the SSM.

scholarly journals The European Banking Union: will it be Sufficient to Avert Another Debt Crisis in Europe?

2016 ◽  
Vol 6 (11) ◽  
pp. 15 ◽  
Author(s):  
Ross Alexander Spence
Keyword(s):  
Financial Crises ◽  
Debt Crisis ◽  
Banking Union ◽  
Member States ◽  
Single Supervisory Mechanism ◽  
European Banking Union ◽  
The Past ◽  
Single Resolution Mechanism ◽  
European Banking ◽  
Single Rulebook

<p>The rationales for the creation of the European Banking Union (“EBU”), what its objectives are and the main pillars of support for such a scheme, are worthy of investigation.  This article means to critically discuss the various elements of the EBU and determine whether the Single Supervisory Mechanism and the Single Resolution Mechanism, the main pillars underpinning the structure, are robust enough to avert another debt crisis in Europe. At the EBU’s heart lies the Single Rulebook (“SR”), which aims to counter the risk of fragmentation and nationalist tendencies. This inward looking trend became apparent in the recent financial crises, and contributed greatly to them. In an effort to avoid repeating the divisive and disjointed mistakes of the past, the SR is instead looking to provide unity and harmonisation across all participating member states. </p>

scholarly journals European Banking Union and bank risk disclosure: the effects of the Single Supervisory Mechanism

2021 ◽  
Author(s):  
Yener Altunbaş ◽  
Salvatore Polizzi ◽  
Enzo Scannella ◽  
John Thornton
Keyword(s):  
Bank Risk ◽  
Banking Union ◽  
Risk Disclosure ◽  
Exogenous Shock ◽  
Bank Supervision ◽  
Single Supervisory Mechanism ◽  
European Banking Union ◽  
European Banking ◽  
Bank Disclosure ◽  
The Impact

AbstractThis paper provides evidence on the impact of European Banking Union (BU) and the associated Single Supervisory Mechanism (SSM) on the risk disclosure practices of European banks. The onset of BU and the associated rules are considered as an exogenous shock that provides the setting for a natural experiment to analyze the effects of the new supervisory arrangements on bank risk disclosure practices. A Difference-in-Differences approach is adopted, building evidence from the disclosure practices of systemically important banks supervised by the European Central Bank (ECB) and other banks supervised by national regulators over the period 2012–2017. The main findings are that bank risk disclosure increased overall following BU but there was a weakening of disclosure by SSM-supervised banks relative to banks supervised by national authorities. We also find that the overall positive effect of the BU on bank disclosure is stronger for less profitable banks and in the most troubled economies of the Eurozone (GIPSI countries), while the negative effect on centrally supervised banks is stronger if bank CEOs act also as chairmen (CEO duality). We interpret these findings in light of the fact that the new institutional arrangements for bank supervision under which the ECB relies on local supervisors to collect the information necessary to act gives rise to inefficiencies with respect to the speed and completeness of the information flow between SSM supervised banks and the ECB, which are reflected in bank disclosure practices.

scholarly journals The impact of the European Banking Union’s Single Supervisory Mechanism on corporate governance practices in European banks

2018 ◽  
Vol 13 (2) ◽  
pp. 164-177 ◽  
Author(s):  
Udo Braendle
Keyword(s):  
Corporate Governance ◽  
Banking System ◽  
Banking Union ◽  
Single Supervisory Mechanism ◽  
European Banking Union ◽  
Regulatory Changes ◽  
Governance Practices ◽  
European Banking ◽  
European Banks ◽  
The Impact

Weak corporate governance in financial institutions has been a contributing factor of the financial crisis. The topic has, therefore, become the key priorities of banking supervision, because one of the takeaways was that. The article gives an overview about the newly established European Banking Union and about its structure focusing on the first pillar, the Single Supervisory Mechanism (SSM). In a second step, the focus is laid on the recent regulatory changes regarding corporate governance, the related supervisory practice and implications for European banks. Overall, the conducted changes in the regulatory framework, especially regarding corporate governance, seem to meet the objective of ensuring safety and soundness of the European banking system. Room for improvement is found regarding proportionality and transparency of the supervisory practices as well as its influence on banks’ profitability.

5. Bank Supervision in Practice: The Case of the UK and of the European Banking Union

2018 ◽  
Author(s):  
Ross Cranston ◽  
Emilios Avgouleas ◽  
Kristin van Zweiten ◽  
Theodor van Sante ◽  
Christoper Hare
Keyword(s):  
Financial Services ◽  
Financial Stability ◽  
Debt Crisis ◽  
Banking Union ◽  
Financial Policy ◽  
Regulatory Structure ◽  
Bank Supervision ◽  
European Banking Union ◽  
European Banking ◽  
The Uk

This chapter discusses banking supervision in practice. It focuses on two jurisdictions: the UK and the European Banking Union (EBU), and considers in particular the type of powers enjoyed by the UK and EBU regulators, and the way they exercise them in their supervisory approaches. In the process the chapter highlights loopholes in the respective regimes and to some extent evaluates their effectiveness. On 1 April 2013 the Financial Services Act 2012 came into force, removing the Financial Services Authority and delivering a new regulatory structure for the UK, which comprises the Prudential Regulation Authority responsible for microprudential regulation and supervision of banks, building societies, and investment firms; and the Financial Conduct Authority, in addition to a financial stability (macroprudential) body within the Bank of England, the Financial Policy Committee. The EBU brought about the centralization of bank supervision and resolution within the Eurozone. The trigger for the establishment of the EBU was the Eurozone debt crisis.

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