The launch of the Single Supervisory Mechanism (SSM) was an historic event. Beginning in Nov. 2014, the most significant banks came under the direct supervision of the European Central Bank (ECB), while national supervisory authorities (NSAs) maintained direct supervision of the remaining banks. Thus, supervision is conducted on two levels, which could cause inconsistency problems. Did the behavior of the significant banks differ from that of the less significant banks during the SSM launch? We find that the significant banks reduced their lending activity more than the less significant banks did in order to shrink their balance sheets and increase their capitalization.

Fiordelisi, F., Ricci, O., & STENTELLA LOPES, F.S. (2017). The unintended consequences of the launch of the single supervisory mechanism in Europe. JOURNAL OF FINANCIAL AND QUANTITATIVE ANALYSIS, 52(6), 2809-2836 [10.1017/S0022109017000886].

The unintended consequences of the launch of the single supervisory mechanism in Europe

Fiordelisi, Franco;Ricci, Ornella;STENTELLA LOPES, FRANCESCO SAVERIO
2017

Abstract

The launch of the Single Supervisory Mechanism (SSM) was an historic event. Beginning in Nov. 2014, the most significant banks came under the direct supervision of the European Central Bank (ECB), while national supervisory authorities (NSAs) maintained direct supervision of the remaining banks. Thus, supervision is conducted on two levels, which could cause inconsistency problems. Did the behavior of the significant banks differ from that of the less significant banks during the SSM launch? We find that the significant banks reduced their lending activity more than the less significant banks did in order to shrink their balance sheets and increase their capitalization.
Fiordelisi, F., Ricci, O., & STENTELLA LOPES, F.S. (2017). The unintended consequences of the launch of the single supervisory mechanism in Europe. JOURNAL OF FINANCIAL AND QUANTITATIVE ANALYSIS, 52(6), 2809-2836 [10.1017/S0022109017000886].
File in questo prodotto:
File Dimensione Formato  
JFQA_fina text_6Aug2016 post print.pdf

accesso aperto

Tipologia: Documento in Post-print
Licenza: Creative commons
Dimensione 714.42 kB
Formato Adobe PDF
714.42 kB Adobe PDF Visualizza/Apri

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11590/327092
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 26
  • ???jsp.display-item.citation.isi??? 24
social impact