Establishing the Single Supervisory Mechanism (SSM) is one of the major steps in recent years towards substantial European integration. Indeed, the SSM is one of the three pillars of the Banking Union. It has centralised the supervision of significant credit institutions at the European Central Bank (ECB). The legal structure is complex and very technical and it is no surprise that the path to establishing the SSM was debated widely and the legal solution often criticised.
Written by one of the top lawyers of the ECB, the book under review deals with the SSM, but not in relation to whether the SSM was the best solution to the problems in the banking sector. As the Author clearly points out, “the purpose of this book is to shed some light on the new organisational and procedural framework applying to banking supervision.”
Divided into 14 chapters, the book is the perfect tool to understand the functioning of the SSM. The first chapter provides an overview of the legal acts establishing and shaping the SSM. The second chapter addresses some basic topics such as the compliance of the legal framework of the SSM with higher ranking Union law (for example, Article 127 TFEU) and national constitutional law (in particular, the German constitutional order). The following Chapters provide an overview of the organisational structure of the SSM (with a very interesting and useful presentation of the tasks and powers of the different divisions and units of the ECB), the functioning of the Supervisory Board and the law applicable to the ECB.
Other chapters deal with the very crucial topics of determining the significance of credit institutions and the beginning and end of direct supervision by the ECB, enforcement and sanctioning powers and litigating ECB supervisory decisions before the EU courts.
With an unparalleled degree of detail and systematic coverage, this book is also readable and understandable. It is a must-have for all those involved in this field of law.
Riccardo Sciaudone
Head
Reviewed May 2019