The banking union’s single supervisory mechanism and the securities business

Eddy Wymeersch
Additional contact information
Eddy Wymeersch: University of Ghent, Belgium

Journal of Securities Operations & Custody, 2013, vol. 5, issue 3, 194-202

Abstract: The European Union (EU) Commission decision to centralise prudential supervision — the so-called single supervisory mechanism (SSM) — only relate to banks, or technically ‘credit institutions’. Other financial institutions, eg investment firms, investment managers, central clearing counterparties (CCPs) or central securities depositories (CSDs), will not be included, except if they have adopted the legal form of a bank. The paper investigates to what extent prudential supervision will affect the securities side of financial activity, both in integrated banking groups and, indirectly, in non-banking financial entities. It concludes that the outcome will not be very different from the present situation, at least in some member states, where prudential supervisors have been actively paying attention to securities activities to the extent that these may affect the risks at the banks they supervise. The new model in fact follows the path of the previous ‘twin peaks’ models that exist in most EU member states, the UK and the Netherlands being two examples. As is evidenced in these states, there is a strong need for cooperation and coordination between the two lines of supervision. As far as the SSM is concerned, provision for cooperation is made in several EU regulations — the Capital Requirements Directive IV and European Supervisory Authorities regulations — but these may need to be adapted to the new setting.

Keywords: banking union; ECB; prudential and securities supervision; investment firms; CCPs; CSDs (search for similar items in EconPapers)
JEL-codes: E5 G2 K22 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hstalks.com/article/2131/download/ (application/pdf)
https://hstalks.com/article/2131/ (text/html)
Requires a paid subscription for full access.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aza:jsoc00:y:2013:v:5:i:3:p:194-202

Access Statistics for this article

More articles in Journal of Securities Operations & Custody from Henry Stewart Publications
Bibliographic data for series maintained by Henry Stewart Talks ().