Volume 27 (2016) / Issue 1
The weaknesses in the implementation of financial supervision, the extensive harmonization of banking laws and the financial and eurozone crises have forced the EU Member States to reform the European financial supervision. In 2011 the EU introduced a new financial supervision system, and in September 2012 proposals for establishing a Single Supervisory Mechanism (SSM) were revealed. The European Commission made a new proposal for a Single Resolution Mechanism (SRM) in May 2013. The present article seeks to analyse the changes, problems and possibilities for improvement of the new financial supervision system. Chronologically the work follows the historical reforms of the European supervision and gives particular attention to the new model of centralised bank supervision through the ECB. At the end of the article the core issues of the reforms will be presented. Further to this the problems and the remaining open questions will be explored and the potential long-term prospects outlined.
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