European banking supervision, also known as the Single Supervisory Mechanism, is the first and arguably the main component of European banking union. In late 2014, the European Central Bank became the supervisor for the region's largest banking groups; the ECB also oversees the supervision by national authorities of smaller banks. This Blueprint is the first in-depth study of how this ground-breaking reform is working in practice. Despite teething troubles and occasional misjudgements, this assessment finds that overall European banking supervision has been effective, demanding and broadly fair, at least for the banks under the ECB's direct watch. Even so, achieving a truly single market in banking services will require more time, further supervisory initiatives and new Europe-wide regulatory and legislative steps.

In the aftermath of the last financial crisis, on both sides of the Atlantic banking supervisors were given new supervisory and enforcement powers, which are often of a substantially punitive-criminal nature. In Europe in particular, the establishment of the Single Supervisory Mechanism within the European Central Bank substantially increased centralised investigatory and sanctioning powers. This major innovation, together with the development of forms of real-time monitoring of banking (often digital) records, challenges traditional banking criminal investigations in their national-based and analogue dimension.The book offers a comprehensive account and perspective analysis of the interactions between the criminal and administrative nature of such new powers, highlighting their “punitive” overall nature and their impact on fundamental rights. Covering both the US and the EU regulatory frameworks, it presents unprecedented, trans-systemic research between criminal law and procedure, and between regulatory and administrative law, at the international, European and national level.The book also includes a rich and detailed selection of case law from the US and the European supreme courts, with a specific focus on CJEU and ECtHR decisions.

The book analyses the institutions of the European financial market supervision and the challenges of financial markets. The current European supervisory structure for financial markets represents a major development in European supervisory history. Its operation however has to be explored and analysed critically. Has it gone far enough to provide a sufficiently comprehensive and resilient system to reduce or mitigate systemic risks and handle financial crises? Some claim it has gone too far already. Fresh and rigorous critical legal and economic analysis from an independent scholarly perspective are needed to assess whether the institutional design of the European supervisory architecture has proved itself to be an efficient and effective model. This book discusses many dimensions of the structure and workings of the European system from various angles providing different dimensions. The book makes an important contribution to the limited literature on financial market supervision.

This is the first book to offer a profound, practical analysis of the framework for the judicial and pre-judicial protection of rights under the supranational banking supervision and resolution powers in the European Banking Union (EBU). It is also unique in its in-depth commentary on the developing case law from the European Court of Justice in this new field of EU litigation.

This new work provides timely analysis of the cross-border exercise of banking activity in the EU and its supervision, from the perspective of the 'home-host rule'. It examines the current system and the efficacy of recent reforms considering whether the centralisation of decision making and a more effective mutualisation of financing tools could increase the efficiency of the EU banking system and reduce the asymmetry of information between home and host authorities.0This book analyses how far recent reforms under the banking union regime have addressed these issues to ensure the integrity and stability of the European integration project. It utilises data to illustrate the cross border exposures between member states and how they influence home and host decision making. But it equally explores those areas that still remain within the national discretion such as non-performing loans, insolvency-liquidation of banks and deposit protection arrangements, to0mention a few.0The book analyses the main pillars of the banking union: the single supervisory mechanism (SSM); and the Single Resolution Mechanism (SRM) and the proposed European Deposit Insurance Scheme (EDIS); and the related tools designed to provide crisis management under the European Stability Mechanism (ESM). As such the work considers the impact of the Single Rulebook. In considering these pieces of regulation and mechanisms the book analyses how international standards and EU requirements undertake to divide responsibilities between the home and host state and the extent to which they align interests between the home and host and minimise potential conflicts of interests. In this analysis examples from a set of EU cross-border banks are used to illustrate the workings of home and host relationship between Member States and Third Countries, and the benefits of participating in centralisation of decision making and mutualisation of financing in resolution and depositor protection.0.

The financial market events in 2007-2009 have spurred renewed interest and controversy in debates regarding financial regulation and supervision. This book takes stock of the developments in EU legislation, case law and institutional structures with regards to banking regulation and supervision, which preceded and followed the recent financial crisis. It does not merely provide an update, but anchors these developments into the broader EU law context, challenging past paradigms and anticipating possible developments. The author provides a systematic analysis of the interactions between the content of prudential rules and the mechanisms behind their production and application European Prudential Banking Regulation and Supervision includes discussions of the European banking market structure and of regulatory theory that both aim to circumscribe prudential concerns. It scrutinises the content of prudential norms, proposes a qualification of these norms and an assessment of their interaction with other types of norms (corporate, auditing and accounting, consumer protection, competition rules). It also features an analysis of the underpinning institutional set-up and its envisaged reforms, focusing on the typical EU concerns related to checks and balances. Finally, the book attempts to revive the debate on supervisory liability, in light of the developments discussed. This book will be of great value to all those interested in financial stability matters (practitioners, policy-makers, students, academics), as well as to EU law scholars.

This book examines the effect of banking on the real economy and society, focusing on banking supervision as the decisive factor in steering banking activities and determining the social outcome of the game of finance. Banking is like a cardiovascular system for our society. If it functions correctly, it allows the economy to operate smoothly. On the other hand, if it malfunctions it becomes a doomsday device. This creates an asymmetry of risks – the asymmetry between the potential dire consequences and the modest rewards of accepting those risks. Banking was one of the critical technological factors enabling the transition from the middle ages and the creation of modern society. However, while today it contributes little to economic growth, its malfunction has a profound and lasting adverse impact. The book explains why, how and what. Why is it important to keep tight supervision of the banks? How can banking supervision improve stability, not only of the financial system but also of the whole human society? What went wrong with the regulation in the past?

This book takes stock after a year of application of the SRM and examines the situation from various perspectives: the perspective of the SRB, the NRA, the supervised bank and judicial protection. Special attention is given to the division of power between the RB and the NRA and the impact on the supervised bank, the relationship and links between the SRM and the SSM and the query whether the right balance between national and supranational powers has been struck, also in view of the principle of subsidiarity.

An examination of executive actors' accountability for EU economic decisions in the aftermath of the euro crisis.

In this innovative book a leading expert directly involved in the development and implementation of the framework compellingly demonstrates the necessity of removing differences in banking legislation across national borders within the Banking Union. The author analyses all the cases where the European Central Bank (ECB) is required to apply national legislation in accordance with the country of establishment of the credit institutions under its direct supervision within the Single Supervisory Mechanism (SSM). Drawing on the case law of the European Court of Justice concerning the transposition of EU Directives the book also develops an analytical methodology to assess the derivation of national legislation from EU law with application to several concrete cases. In an in-depth analysis of the complex legal environment in which the ECB, as prudential supervisory authority, has been operating, the author thoroughly answers the following questions: – What are the supervisory tasks and powers of the ECB in the micro and macroprudential spheres? – When is the ECB required to apply national legislation? – What are the 'direct' and the 'indirect' supervisory powers of the ECB vis-à-vis significant supervised entities? – What are the options and discretions available in EU law? – What are the most important prudential options the ECB has exercised for significant supervised entities? – What are the main legal obstacles to the establishment of a truly single supervisory jurisdiction within the Euroarea with actual fungibility of capital and liquidity for cross-border banking groups? The legal analysis in this book supports, with great authority, the demands for a leap forward in the full harmonisation of key prudential requirements within the Banking Union. Legal and banking practitioners, officials in national and European authorities, banking law scholars and policymakers will benefit enormously from the lessons it contains for the way forward of the Banking Union and, more generally, the future of the European Union itself.