POLL: Is the SSM working?

Author: Tom Young | Published: 24 May 2017
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The European Commission’s single supervisory mechanism (SSM) is either a raging success or an inflexible failure depending on who you talk 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.

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, which was inconsistent with that taken by local regulator, was disputed by the bank, and raised questions over the ECB's indirect oversight of smaller institutions.

Similarly Italian and French banks have complained about the SSM’s treatment in dealing with its beleaguered institutions in times of crisis.

However, advocates say that the SSM was created to end the apparently cosy relationship between banks and their national regulators and improve the smoothness of filings – two things it has undoubtedly achieved. It has rapidly staffed up with 1200 regulators, while the ECB has been praised for its clear communication too.

With this in mind, IFLR’s latest poll asks the market whether the SSM is working, or if further improvements could be made.

Vote now on the 'Quick Poll’ menu on the right-hand side of IFLR’s homepage. All votes and comments are anonymous. To arrange an off-the-record interview to elaborate on your response, email tom.young@legalmediagroup.com

Results of past polls:

POLL: countering M&A protectionism

POLL: preventing EU clearing house failure