TY  - UNPD
A1  - Tröger, Tobias
T1  - The Single Supervisory Mechanism – Panacea or Quack Banking Regulation? : Preliminary assessments of the evolving regime for the prudential supervision of banks with the ECB involvement (August 16, 2013)
T2  - SAFE working paper series ; No. 27
N2  - This paper analyzes the evolving architecture for the prudential supervision of banks in the euro area. It is primarily concerned with the likely effectiveness of the SSM as a regime that intends to bolster financial stability in the steady state.
By using insights from the political economy of bureaucracy it finds that the SSM is overly focused on sharp tools to discipline captured national supervisors and thus under-incentives their top-level personnel to voluntarily contribute to rigid supervision. The success of the SSM in this regard will hinge on establishing a common supervisory culture that provides positive incentives for national supervisors. In this regard, the internal decision making structure of the ECB in supervisory matters provides some integrative elements. Yet, the complex procedures also impede swift decision making and do not solve the problem adequately. Ultimately, a careful design and animation of the ECB-defined supervisory framework and the development of inter-agency career opportunities will be critical.
The ECB will become a de facto standard setter that competes with the EBA. A likely standoff in the EBA’s Board of Supervisors will lead to a growing gap in regulatory integration between SSM-participants and other EU Member States.
Joining the SSM as a non-euro area Member State is unattractive because the cur-rent legal framework grants no voting rights in the ECB’s ultimate decision making body. It also does not supply a credible commitment opportunity for Member States who seek to bond to high quality supervision.
T3  - SAFE working paper - 27 
KW  - prudential supervision
KW  - banking union
KW  - regulatory capture
KW  - political economy of bureaucracy
KW  - European Central Bank (ECB)
KW  - European Banking Authority (EBA)
Y1  - 2013
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/31550
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-315503
UR  - http://ssrn.com/abstract=2311353
SP  - 1
EP  - 42
CY  - Frankfurt am Main
ER  -