The single supervisory mechanism has impressed,
but filing requirements and JSTs should be
|Is the EU’s single
supervisory mechanism working?
The European Commission's single supervisory mechanism
(SSM) is either a raging success or an inflexible failure
depending on which European bank you speak to. In the two and a
half years since it was granted the supervisory role to monitor
the financial stability of banks in participating member
states, it has courted both controversy and praise.
It has certainly faced opposition. In May this year the
European Central Bank (ECB) won its court battle against
Landeskreditbank Baden-Wutrttenberg after the German bank
claimed it was not big enough to threaten financial stability
of the eurozone to justify being supervised by the SSM. And in
early 2016, Latvian bank Trasta Komercbanka put the SSM to the
test when the ECB revoked its licence for compliance failings.
The decision raised questions...