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
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