The ECBs halfbaked supervision mandate

Jakob Vestergaard, Stine Quorning

Research output: Contribution to conferencePaperResearchpeer-review


Over the last couple of years, there has been considerable debate on the need to “complete” the banking union. In this debate there has been little attention, however,to the omission of shadow banks from the supervision mandate given to the European Central Bank in and through the Single Supervisory Mechanism (SSM). The European Systemic Risk Board’s (ESRB) –confined to monitoring, as opposed to supervising –recentlydocumented that Europe’s banking and non-banking financial institutions are as interconnected as ever. There cannot be any such thing as a completion of Europe’s banking union, we argue, without the establishment of formal European supervision of all non-banking institutions. We identify fourpotential, explanatory factors for the omission of shadow banking from the SSM mandate. This examination of factors that may help explain the SSM’s narrow supervision mandate, allows us to reflect on strategies –discursive as well as organizational –towards establishing pan-European supervision of all non-banking financial institutions
Original languageEnglish
Publication date11 Sep 2019
Number of pages23
Publication statusPublished - 11 Sep 2019
EventDe-risking the Future of Europe: Reforming the Macrofinancial Architecture - London School of Economics, London, United Kingdom
Duration: 11 Sep 201911 Sep 2019


ConferenceDe-risking the Future of Europe
LocationLondon School of Economics
CountryUnited Kingdom
Internet address

Cite this

Vestergaard, J., & Quorning, S. (2019). The ECBs halfbaked supervision mandate. Paper presented at De-risking the Future of Europe, London, United Kingdom.