The European boards of bank supervision and bank resolution: balancing independence with democratic accountability?
Keywords:ECB’s Council of Supervision, Single Resolution Board, Independence, Democratic Accountability
This paper reviews the complex balance between democratic accountability and independence of the European Boards of Bank Supervision and of Bank Resolution, within the core of the European Banking Union. For that purpose, it first examines the legal bases of such attribution of independence to each of these Boards. It also reviews the dialectics between independence and democratic accountability in the appointment and resignation regime of the members, and in oversight of the performance, of the respective Boards. The analysis differentiates between both organs because the ECB is not the independent body to which the SRM Regulation confers the managing and implementing of its provisions, but to an ad hoc body, the SRB, whose direct source of creation is the SRM Regulation itself. In this scenario, the balance between the independence unfolds in a different legal setting to that of the SSM, provided that such independence (like the ECB itself) is a direct creation of EU primary law. In addition to this peculiarity, another, no less significant, lies in the fact that the funding of the SRF is governed by an intergovernmental Treaty between the Member States participating in the SRM. Such difference concerning the SSM has specific implications for the SRM precisely from the standpoint of the European democratic legitimacy, in terms of institutional origin, but also of appointment and dismissal of its members, as well as of a performance, all of which are also dealt with in this paper. Finally, the paper reaches the consequent legal conclusions, the main of those being the resulting imbalance between democracy and ‘technocracy’.
AMTENBRINK, Fabian (2002). On the will Legitimacy and Democratic Accountability of the European Central Bank: Legal Arrangements and Practical Experiences. In ARNULL, A. and WINCOTT, D. (eds.), Accountability and Legitimacy in the European Union. Oxford and New York: Oxford University Press: 147-163.
AMTENBRINK, Fabian, and MARKAKIS, Menelaos (2019). Towards a Meaningful Prudential Supervision Dialogue in the Euro Area? A Study of the Interaction between the European Parliament and the European Central Bank in the Single Supervisory Mechanism. European Law Review, 44(1): 14-15.
BUSCH, Danny (2015). Governance of the Single Resolution Mechanism. In BUSCH, D. and FERRARINI, G. (eds.), European Banking Union. Oxford: Oxford University Press: 283-284.
CHALMERS, Damian, DAVIES, Gareth, and MONTI, Giorgio (2010), European Union Law. Cambridge: Cambridge University Press.
CHATZIMANOLI, Despina (2011). A Crisis of Governance? - From Lamfalussy to de Larosière or Bridging the Gap between Law and New Governance in the EU Financial Services Sector, European journal of risk regulation, 2(3): 322-339.
FERRAN, Eilis (2014). European Banking Union: Imperfect, But It Can Work", University of Cambridge Faculty of Law Research Papers Series, No. 30.
FERRAN, Eilís and BABIS, Valia S. (2013). The European Single Supervisory Mechanism. Journal of Corporate Law Studies, 13(2): 255-285.
GEORGOSOULI, Andromachi (2021). The transnational governance of bank resolution and the treatment of national regulatory variation in the EU. Cambridge Law Review, 82(1): 74-100.
GORTSOS, Christos V. (2019). European Banking Union Within the System of European Banking and Monetary Law. In CHITI, Mario P. and SANTORO, V. (eds.), The Palgrave Handbook of European Banking Union Law. Cham: Springer: 19-40.
HÖGENAUER, Anna-Lena (2021). Scrutiny or Complacency? Banking Union in the Bundestag and the Assemblée National., Politics and Governance, 9(2), 219-229.
HOWARD, David and QUAGLIA, Lucia (2014). The Steep Road to European Banking Union: Constructing the Single Resolution Mechanism. Journal of Common Market Studies, 52(1): 125.
KERN, Alexander (2013). Bank resolution and recovery in the EU: enhancing Banking Union? ERA Forum, 14: 81-93.
LADI, Stella and TSAROUHAS, Dimitris (2020). EU economic governance and Covid-19: policy learning and windows of opportunity. Journal of European Integration, 42(8): 1041-1056.
LINTNER, Paula (2017). De/centralized Decision Making Under the European Resolution Framework: Does Meroni Hamper the Creation of a European Resolution Authority?", European Business Organization Law Review, 18(3): 591-616.
MARICUT-AKBIK, Adina (2020). Contesting the European Central Bank in Banking Supervision: Accountability in Practice at the European Parliament. Journal of Common Market Studies, 58(5): 1199-1214.
MOLONEY, Niamh (2008). The Lamfalussy Legislative Model: A New Era for the EC Securities and Investment Services Regime. The International and Comparative Law Quarterly, 52 (2): 509-520.
MÖLLERS, Thomas M.J (2010). Sources of Law in European Securities Regulation - Effective Regulation, Soft Law and Legal Taxonomy from Lamfalussy to de Larosière. European Business Organization Law Review, 11(3): 379-407.
OLESTI RAYO, Andreu (2018). El control democrático y la rendición de cuentas en el Pacto de Estabilidad y Crecimiento. Revista Vasca de Administración Pública, 110-II: 77-112.
OLESTI RAYO, Andreu (2020). La resposta de la Unió Europea a la crisi derivada de la COVID-19. Revista Catalana de Dret Públic, no. extraord. 3: 89-104.
OLESTI RAYO, Andreu (2021). La Unión Europea y la financiación de las medidas para afrontar la crisis de la COVID-19. Revista General de Derecho Europeo, 53.
RUCCIA, Nicola (2016). The Single Resolution Mechanism and the Single Resolution Fund: Substantive Issues and the Contradictory Democratic Deficit. In DANIELE, L., SIMONE, P., and CISOTTA, R. (eds.), Democracy in the EMU in the Aftermath of the Crisis. Cham: Springer and Giappichelli: 319-332.
SEBASTIÃO, Dina (2021). Covid-19: A Different Economic Crisis but the Same Paradigm of Democratic Deficit in the EU. Politics and Governance, 9(2): 252-264.
TEIXEIRA, Pedro Gustavo (2017). The Legal History of Banking Union. European Business Organization Law Review, 18(3): 535-565.
TER KUILE, Gijsbert, WISSINK, Laura, and BOVENSCHEN, Willem (2015).Tailor-Made Accountability within the Single Supervisory Mechanism. Common Market Law Review, 52(1): 155-189.
TIMMERMANS, Jolien (2019). Guess Who? The SRB as the Accountable Actor in Legal Review Procedures. Review of European Administrative Law, 12(1): 155-190.
TÜRK, Alexander H. (2019). European Banking Union and its Relation with European Union Institutions. In CHITI, Mario P. and SANTORO, Vittorio (eds.), The Palgrave Handbook of European Banking Union Law. Cham: Palgrave MacMillan: 41-64.
VACCARI, Beatrice (2009). Une réglementation innovatrice par les rouages de la comitologie et des comités Européens: le processus Lamfalussy dans le domaine des services financiers. In CHRISTIANSEN, T., OETTEL, J. M., and VACCARI, B. (eds.), 21st century comitology: implementing committees in the enlarged European Union. Maastricht: European Institute of Public Administration: 203-235.
VERON, Nicolas, and WOLFF Guntram B.(2013). From supervision to resolution: next steps on the road to European Banking Union. Bruegel Policy Contribution, no. 4.
WELLERDT, Alexander (2015). Organization of Banking Regulation. Springer, Cham.
How to Cite
Copyright (c) 2022 Francisco Javier Donaire Villa
This work is licensed under a Creative Commons Attribution 4.0 International License.