POLL: mixed results for EU’s SSM

Author: Tom Young | Published: 28 Jun 2017

The single supervisory mechanism has impressed, but filing requirements and JSTs should be addressed

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...