Dinov S. The new European Banking Supervision

Abstract: 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 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 present article seeks to analyse the changes, problems and possibilities for improvement of the new financial supervision system and to give a brief account of potential long-term prospects. Author argues that the competence for European-wide supervision of credit institutions along with all the necessary rights to information and of intervention is still lacking. At the same time, author points out that as a new piece of regulation, it meets the need for further integration in Europe and it will also be better able to meet the challenges of global competition.

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