The Role of the European Banking Authority (EBA) After the Establishment of the Single Supervisory Mechanism (SSM)

Abstract

The establishment of the Single Supervisory Mechanism (SSM) in 2013 has brought about a major institutional change in the governance of the single banking market in the European Union. One of the aspects of particular importance is the relationship of this new mechanism with the European Banking Authority (EBA), which was established in 2010. This chapter analyses the role of the EBA after the establishment of the SSM and is structured in three Sections. The first Section briefly describes the legal framework pertaining to the establishment of the EBA (see Sect. 1.1) and of the SSM (see Sect. 1.2), as well as Regulation (EU) No 1022/2013 amending the ‘EBA Regulation’ (see Sect. 1.3). The second Section explores the relationship between the SSM and the EBA, by focusing on the SSM as part of the European System of Financial Supervision (see Sect. 2.1), and the amendments introduced to the EBA Regulation by Regulation (EU) No 1022/2013 (see Sect. 2.2). The main conclusions, included in the third Section, are that under Regulation (EU) No 1022/2013 the EBA’s tasks and powers have been enhanced, a new relationship between the ECB and the EBA after the establishment of the SSM has been set up, and the EBA’s governance has been amended in order to take into account the different position of the two groups of national competent authorities-members of the EBA’s Board of Supervisors after the establishment of the SSM: those of participating Member States and those of non-participating Member States.