The impact of the European Banking Union’s Single Supervisory Mechanism on corporate governance practices in European banks Cover Image

The impact of the European Banking Union’s Single Supervisory Mechanism on corporate governance practices in European banks
The impact of the European Banking Union’s Single Supervisory Mechanism on corporate governance practices in European banks

Author(s): Udo Braendle
Subject(s): Economy, Business Economy / Management, Financial Markets
Published by: ТОВ “Консалтингово-видавнича компанія “Ділові перспективи”
Keywords: corporate governance; European Banking Union; regulation; Single Supervisory Mechanism

Summary/Abstract: Weak corporate governance in financial institutions has been a contributing factor of the financial crisis. The topic has, therefore, become the key priorities of banking supervision, because one of the takeaways was that. The article gives an overview about the newly established European Banking Union and about its structure focusing on the first pillar, the Single Supervisory Mechanism (SSM). In a second step, the focus is laid on the recent regulatory changes regarding corporate governance, the related supervisory practice and implications for European banks. Overall, the conducted changes in the regulatory framework, especially regarding corporate governance, seem to meet the objective of ensuring safety and soundness of the European banking system. Room for improvement is found regarding proportionality and transparency of the supervisory practices as well as its influence on banks’ profitability.

  • Issue Year: 13/2018
  • Issue No: 2
  • Page Range: 164-177
  • Page Count: 14
  • Language: English