From the Single Supervisory Mechanism to the Banking Union. The role of the ECB and the EBA

The agreement on the Single Supervisory Mechanism (SSM) is an important step to create an integrated banking system in Europe. In this article we look at the powers attributed to the ECB, from a legal perspective, in order to evaluate the SSM in the broader European architecture of banking supervision. We focus on three issues: the coexistence of more authorities with the same functions on a different perimeter of intermediaries in Europe, due to the UK decision to remain outside the SSM; the creation of a supervisory authority with weak regulatory powers (since these remain in the hands of European institutions and national legislators); and ambiguity over the competence to carry out early intervention powers. These issues should be addressed to increase the effectiveness of supervision. To this end, first we need an “umbrella authority” to coordinate supervision among all European countries (those that do and do not adhere to the SSM); this role could be played by the EBA. Second it is crucial to strengthen the powers of the ECB, in the regulatory field as well as for dealing with an impending crisis.The agreement on the Single Supervisory Mechanism (SSM) is an important step to create an integrated banking system in Europe. In this article we look at the powers attributed to the ECB, from a legal perspective, in order to evaluate the SSM in the broader European architecture of banking supervision. We focus on three issues: the coexistence of more authorities with the same functions on a different perimeter of intermediaries in Europe, due to the UK decision to remain outside the SSM; the creation of a supervisory authority with weak regulatory powers (since these remain in the hands of European institutions and national legislators); and ambiguity over the competence to carry out early intervention powers. These issues should be addressed to increase the effectiveness of supervision. To this end, first we need an “umbrella authority” to coordinate supervision among all European countries (those that do and do not adhere to the SSM); this role could be played by the EBA. Second it is crucial to strengthen the powers of the ECB, in the regulatory field as well as for dealing with an impending crisis.Refereed Working Papers / of international relevanc

The Administrative Review of Decisions of the ECB in the Supervisory Field

The paper examines the administrative review of the ECB decisions in the banking supervisory field. In the first paragraphs the core characteristics of the functioning of the internal administrative review carried out by the Administrative Board of Review (ABoR) are described. The paper highlights the differences between the ABoR and similar bodies that are already in place for reviewing decisions of some European agencies. The final paragraph proposes some reflections on the role of the Board, also in light of the remarks expressed by the General Court in the case Landeskreditbank Baden-Wüttemberg Förderbank v ECB of 16 May 2017. The ABoR is an administrative body and cannot be regarded as a court. It is part of the decision-making process of the ECB

Completing the Banking Union The case of crisis management of small- and medium-sized banks

An important gap in the EU Banking Union architecture is the absence of a clear and uniform regulatory framework for the crisis management of small- and medium-sized banks. The authors argue that, taking stock from the US experience, a limited number of revisions to the current legal framework would be sufficient to establish a “standard proceeding” favoring alternative interventions by DGSs. This document was provided by the Economic Governance and EMU scrutiny Unit at the request of the ECON Committee.This document was requested by the European Parliament's Committee on Economic and Monetary Affairs

The Administrative Board of Review of the European Central Bank: Experience After 2 Years

This article examines the administrative remedy provided by the Administrative Board of Review (ABoR) of the European Central Bank (ECB), as part of the broader issue of the right of defence of natural and legal persons vis-à-vis ECB supervisory decisions within the Single Supervisory Mechanism (SSM). After presenting an overview of the review panels established in the financial sector in the EU, the article describes the experience with the ABoR by analysing its composition, its mandate and scope of review, the main procedural aspects and the relationship with judicial proceedings before the European Court of Justice. Particular attention is given to the substantial issues dealt with by the ABoR in its Opinions and to some of the major challenges faced in the first 2 years of practice. Among them is the assessment of the correct application of national laws implementing EU legislation by the ECB. The paper identifies two aspects giving particular cause for concern and requiring legislative reforms: (1) the assessment of the suitability of the members of management bodies (fit and proper assessment) and (2) the inclusion of bank holding companies within the scope of banking supervision

Diritto ed economia del mercato

Il mercato ha assunto negli ultimi tempi un rilievo crescente quale fulcro dell'economia e della regolamentazione, suscitando l'interesse di studiosi delle varie discipline umanistiche. In questa prospettiva, il volume analizza e declina sotto più punti di vista il tema del mercato, da una prospettiva sociologica, economica, aziendale e giuridica, proponendosi di fornire un quadro ampio ed articolato del fenomeno, con il doppio intento di dar risposte al vivace dibattito dottrinario ed al contempo di stimolarne la continuazione. Grande è stata l'attenzione posta dagli Autori agli aspetti internazionali, non solo comunitari, del tema, non a caso introdotto proprio dall'esame del fenomeno della globalizzazion