The Single Supervisory Mechanism within the Banking Union – Novel Features and Implications for Austrian Supervisors and Supervised Entities

Dieter Huber () and Elisabeth von Pföstl ()
Additional contact information
Dieter Huber: Off-Site Banking Analysis and Strategy Division
Elisabeth von Pföstl: Off-Site Banking Analysis and Strategy Division

Financial Stability Report, 2013, issue 25, 52-56

Abstract: Over the past decades, the internal market for banking services has flourished. The financial crisis and contagion from banks to sovereigns and across borders has underlined the need to match the size and level of cross-border activities of banks with the integration of banking supervision. To align supervisory and political responsibilities with the competence to provide a financial backstop, the heads of government of the euro area have proposed a three-pillar model for a banking union. As a first step in implementing banking union, supervisory responsibility for banks in participating Member States will be conferred on the ECB. Within the framework of a single supervisory mechanism (SSM), the ECB will share duties with the national authorities. The ECB will be responsible for the overall functioning of the SSM. At the same time, national authorities retain certain responsibilities, including the supervision of less significant banks. The changes to the supervisory process require a suitable organizational setup and procedures that account for the roles and responsibilities of the ECB and national authorities within the SSM and vis-à-vis supervised institutions.

Keywords: single supervisory mechanism; banking union; ESM; banking supervision; joint supervisory team; ECB framework regulation (search for similar items in EconPapers)
JEL-codes: K23 K33 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.oenb.at/dam/jcr:03b4fca2-8b00-432f-85f ... cs1_tcm16-256587.pdf (application/pdf)

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:onb:oenbfs:y:2013:i:25:b:1

Ordering information: This journal article can be ordered from
Oesterreichische Nationalbank, Documentation Management and Communications Services, Otto-Wagner Platz 3, A-1090 Vienna, Austria

Access Statistics for this article

Financial Stability Report is currently edited by Markus Schwaiger, Birgit Niessner, Vanessa Redak and Martin Schuerz

More articles in Financial Stability Report from Oesterreichische Nationalbank (Austrian Central Bank) P.O. Box 61, A-1011 Vienna, Austria. Contact information at EDIRC.
Bibliographic data for series maintained by Stefan W. Schmitz ().