Tailor-made accountability within the Single Supervisory Mechanism

Publishers Abstract:
Banking supervision within the euro zone has been placed in the hands of the European Central Bank in order to restore financial stability and aid economic recovery. This 'Single Supervisory Mechanism' is an important step in further integrating the financial markets and indeed the European Union itself. The SSM creates new legal realities within EU law. In bolstering EU integration, a key question concerns the democratic legitimacy of the SSM. The article argues that different modes of accountability can be identified in the creation and operation of the SSM, of a political, administrative and judicial nature. This great variety leads to tailor-made accountability which keeps power in check while respecting the independence of the banking supervisors.