The next SSM term: supervisory challenges ahead

In this note, we first highlight different developments for banks under direct ECB supervision within the SSM that may prompt further investigation by supervisors. We find that banks that were weakly capitalized at the s
In this note, we first highlight different developments for banks under direct ECB supervision within the SSM that may prompt further investigation by supervisors. We find that banks that were weakly capitalized at the start of direct ECB supervision (1) still face elevated levels of non-performing loans, (2) are less cost-efficient and (3) reduced their share of subordinated debt financing over the last years. We then stress the importance of continuous and ongoing cost-benefit analysis regarding banking supervision in Europe. We also encourage processes to question existing supervisory practices to ensure a lean and efficient banking supervision. Finally, we underline the need of continuous and intensified coordination among regulatory bodies in the Banking Union since the efficacy of European bank supervision rests on its interplay with many different institutions.
This document was requested by the European Parliament's Committee on Economic and Monetary Affairs. It was originally published on the European Parliament’s webpage. 
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Metadaten
Author:Martin Götz, Tobias Tröger, Mark Wahrenburg
URN:urn:nbn:de:hebis:30:3-489064
URL:https://safe-frankfurt.de/de/policy-center/publikationen/detailsview/publicationname/the-next-ssm-term-supervisory-challenges-ahead.html
Parent Title (English):SAFE white paper ; No. 59 ; zuerst: European Parliament. Economic Governance Support Unit, Directorate-General for Internal Policies of the Union PE 634.389 - March 2019
Series (Serial Number):SAFE white paper series (59)
Publisher:SAFE
Place of publication:Frankfurt am Main
Document Type:Working Paper
Language:English
Year of Completion:2019
Year of first Publication:2019
Publishing Institution:Universitätsbibliothek Johann Christian Senckenberg
Release Date:2019/03/27
Pagenumber:25
HeBIS PPN:447160753
Institutes:Wirtschaftswissenschaften
House of Finance (HoF)
Center for Financial Studies (CFS)
Sustainable Architecture for Finance in Europe (SAFE)
Dewey Decimal Classification:330 Wirtschaft
Sammlungen:Universitätspublikationen
Licence (German):License Logo Veröffentlichungsvertrag für Publikationen

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