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.

The SDN elaborates the case for, and the design of, a banking union for the euro area. It discusses the benefits and costs of a banking union, presents a steady state view of the banking union, elaborates difficult transition issues, and briefly discusses broader EU issues. As such, it assesses current plans and provides advice. It is accompanied by three background technical notes that analyze in depth the various elements of the banking union: a single supervisory framework; a single resolution and common safety net; and urgent issues related to repair of weak banks in Europe.

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.

Since the first of January 2016, the Single Resolution Mechanism (SRM) has become fully operational. For the Member States of the European Banking Union the new regime entails a transferral of the decision-making on failing banks to the European level, specifically the Single Resolution Board (SRB). The political sensitivity hereof is illustrated by the European and Italian reaction to the mounting troubles in some parts of the Italian banking sector. The new European regime raises the question if, and if so to what degree, Member States participating in the European Banking Union (EBU Member States) retain discretion in determining the course of action for, and future of, a troubled bank. This question is explored along three lines of inquiry. First, we analyse the degree of harmonisation provided for by the BBRD and SRM. The second line of inquiry analyses EBU Member States' influence in the SRB's decision-making process. The third line of inquiry considers the possibilities (if any) for a public recapitalisation of troubled banks without applying the new general bail-in standard.Our first line of inquiry leads us to conclude that the EBU Member States have surrendered the decision-making on bank resolution to the EBU level, specifically to the SRB. The SRM regulation, consequently, provides for maximum harmonisation, leaving no room for national resolution tools. National resolution powers which operate and compete in the same area as the SRM, such as the Dutch nationalisation law, must thus be held as inapplicable. In the second line of inquiry we found that the SRM has both a supranational and an intergovernmental dimension. While the SRB in its executive session has a strong supranational character Member State influence in bank resolution decision remains present through the involvement of the Council and the SRB in plenary session in key decisions. In the third line we conclude that the rules imposed by the BRRD and SRM Regulation in combination with the State aid regime have rendered public recapitalisation without a bail-in virtually impossible. Outside of resolution, NCBs may assist solvent banks through ELA. In addition, EBU Member States could turn to the possibility of precautionary recapitalisation to prevent that the control over a bank's fate is shifted to the SRB. Such precautionary recapitalisation is however subject to strict conditions.

The European Banking Union and the Role of Law offers a comprehensive and unique examination of the European Banking Union’s (EBU) impact on existing legal disciplines and assesses the role of law in shaping the EBU framework.

This book provides an in-depth analysis of the effectiveness of legal protection in the composite procedures in place within the Single Supervisory Mechanism (SSM), established to ensure an effective prudential banking supervision within the euro area. This system, in which the European Central Bank and national prudential banking supervisors closely cooperate, results in a far-reaching shared administration entailing supervisory decisions based on complex composite administrative procedures which involve both EU and national legal orders. The current system of legal protection seems not yet fully-fledged to the reality of increasingly far-reaching forms of shared administration for the implementation of EU law. This book addresses the tension between ensuring effective supervision, by means of a shared administration, and ensuring effective legal protection in composite administrative procedures. To arrive at a meaningful discussion of the SSM's far-reaching shared administration, it categorizes the composite procedures in place within the SSM in such a way that other shared administrations in fields of law such as the European Structural Funds, fisheries, and the Single Resolut

This book provides a comprehensive overview of European Union (EU) central banking law, a field of EU economic law which emerged in the late 1990s and has developed rapidly ever since. European central banking law pertains to the rules governing the functions, operation, tasks and powers of the European Central Bank (ECB) and the national central banks (NCBs) of EU Member States. Systematically presenting and analysing the role of the ECB as a monetary and banking supervisory authority, the book discusses its changing and developing responsibilities following the financial crisis of 2007-2009 and the ongoing fiscal crisis in the euro area. The book also highlights the ECB’s significant role in relation to the resolution of credit institutions, as well as, conversely, its relatively limited role in respect of last-resort lending to EU credit institutions exposed to liquidity risk. The related tasks and powers of the ECB are presented in light of its interaction with NCBs within the Eurosystem, the European System of Financial Supervision, the Single Supervisory System and the Single Resolution Mechanism. Providing a detailed analysis of the legal framework governing (mainly) the ECB’s monetary policy and other basic tasks within the Eurosystem and its specific tasks in relation to banking supervision and macro-prudential financial oversight, this comprehensive book will be of interest to researchers, practitioners and students in the fields of EU monetary and banking law.

(1) The fifth edition of the present study contains a further update in full of the institutional and regulatory framework governing the Single Resolution Mechanism (SRM) and the Single Resolution Fund (SRF). Its structure has also been revised, since the Sections of previous editions have been turned into Chapters, each of which (except the last one) comprises several Sections. All Sections have also been extended and updated, primarily (but not solely) those included in Chapters 4 (on resolution planning) and 6 (on the SRF, discussing also briefly, and as appropriate, the proposals on the establishment of the European Deposit Insurance Scheme (EDIS)), while several new secondary sources have been added as well. The (new) Section C of Chapter 6 briefly discusses for the first time the issue relating to the provision of liquidity in resolution.(2) The study discusses to some extent the 2016 legislative “banking package” on the amendment, inter alia, of the Single Resolution Mechanism Regulation (SRMR) and the Bank Recovery and Resolution Directive (BRRD). Nevertheless, since the proposed legal acts had not yet been published at the time when this study was finalised, a detailed presentation of their provisions is deemed as being outside its scope (at least, at this stage). (3) Like in previous editions, all primary sources are mentioned, as appropriate, in the main text, and are then listed at the end of the study, along withan extensive list of secondary sources.

Part of the Oxford EU Financial Regulation Series, this work analyses the implications of the Single Supervisory Mechanism (SSM) and the Single Resolution Mechanism (SRM) for banks in Europe, and the second edition reflects the experience in practice of this regime both economically and legally. The new edition provides reflection on the efficacy and problems with the central banking regulatory regime. There are new chapters on capital adequacy, fit and proper testing under the SSM, and deposit guarantee schemes. A further additional chapter considers the impact of the Bank Resolution and Recovery Directive (BRRD) and its interaction with the SRM by detailed analysis of relevant case law. Whist offering insightful updates to existing chapters on the Single Rulebook, CRD IV, the SSM and the SRM, the second edition also includes brand new chapters covering a range of subjects. Unique to the second edition, experienced scholars and practitioners explore The Deposit Guarantee Scheme, fit and proper testing within the SMM, BRRD and SRB in practice. This book benefits from the contributions of a team of leading scholars and practitioners who present a range of perspectives and methodologies. Case studies and in depth-analysis is presented to highlight topics such as supervised credit institutions, implications for financial market governance, and risk management and compliance. European Banking Union (second edition) is the ultimate companion for academics, legal practitioners, financial supervisors, and policy makers.