Eighteen months on from its inception, Europe’s single supervisory mechanism (SSM) has been hailed an overall success – though not without a few teething problems.
A report by Brussels-based think tank Bruegel calls the SSM ‘arguably the most ambitious European structural reform of the past ten years’. It claims that despite a lack of transparency and slow progress in some areas, European banking supervision is effective, tough and fair.
The SSM granted the ECB a supervisory role to monitor the financial stability of banks across member states centrally in November 2014. Marc Perrone, partner at Linklaters in Paris, agrees that it’s been a broad success for banking supervision, in France in particular – and that its learning curve has been steep.
“Filing has got a lot smoother and easier, as we now have clear instructions,” he added. “In general we find the ECB to be good communicators,...