Watching over 21,000 Billion Euros: Does the ECB Single Supervisory Mechanism Affect Bank Competition in the Euro Area? (Burkhard Raunig, Michael Sigmund)

Burkhard Raunig and Michael Sigmund ()
Additional contact information
Michael Sigmund: Oesterreichische Nationalbank, Financial Markets Analysis and Surveillance Division

Working Papers from Oesterreichische Nationalbank (Austrian Central Bank)

Abstract: Under the Single Supervisory Mechanism (SSM), introduced in 2014, systemically important euro area banks with combined assets of about 21,000 billion euros are directly supervised by the ECB.We examine from a static and a dynamic perspective how this fundamental shift to unified supervision under the SSM affects the competitive position of SSM banks. We find that the SSM reduced competition for SSM banks in countries affected by the sovereign debt crisis. Otherwise, the impact of the SSM was limited or competition increased. Furthermore, our results suggest that anti-competitive side effects of the SSM are unlikely to be permanent.

Keywords: ECB Single Supervisory Mechanism; Banking supervision; Competition; Lerner index; Persistence of profits (search for similar items in EconPapers)
JEL-codes: D43 E58 G28 (search for similar items in EconPapers)
Pages: 49
Date: 2023-11-06
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.oenb.at/dam/jcr:7d3084ef-4727-4d9a-abb6-0805651b48d6/wp-250.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:oenbwp:250

Ordering information: This working paper can be ordered from
Oesterreichische Nationalbank, Economic Studies Division, POB 61, A-1011 Vienna, Austria

Access Statistics for this paper

More papers in Working Papers from Oesterreichische Nationalbank (Austrian Central Bank) P.O. Box 61, A-1011 Vienna, Austria. Contact information at EDIRC.
Bibliographic data for series maintained by Markus Knell ().