ECB published a working paper on institutional framework governing the Eurosystem and the Single Supervisory Mechanism (SSM). The paper analyzes regulatory solutions that have been adopted to address constitutional constraints imposed on the functioning of SSM, in which the ECB’s exclusive supervisory competence is carried out.
The paper reviews the institutional framework governing the Eurosystem, which is considered to inform and constrain the regulatory solutions applied to the day-to-day functioning of the SSM. The paper further analyzes the institutional framework governing SSM and identifies three solutions that reflect the institutional continuity of SSM with the Eurosystem:
- Establishment of a Supervisory Board tasked with planning, the execution of supervisory tasks, and the preparation of ECB supervisory decisions
- Development of a framework for internal delegation in ECB of certain supervisory decisions from the Governing Council to ECB lower administrative structures in relation to significant institutions
- Decentralized implementation of ECB supervisory tasks by the national competent authorities in relation to less significant institutions
The paper concludes that the Union operates at its best when centralized decision-making on substantial policy issues is combined with a decentralized operational framework; this allows for the meaningful involvement of national administrations in the exercise of Union exclusive competences.
Related Link: Working Paper (PDF)
Keywords: Europe, EU, Banking, Eurosystem, SSM, Institutional Framework, Constitutional Constraints, ECB
EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.
In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.
IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.
FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.
EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.
FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.
RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.
The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.
HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.
ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).