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

Article


Fiordelisi, F., Ricci, O. and Stentella Lopes, F. 2017. The unintended consequences of the launch of the single supervisory mechanism in Europe. Journal of Financial and Quantitative Analysis. 52 (6), pp. 2809-2836. https://doi.org/10.1017/S0022109017000886
TypeArticle
TitleThe unintended consequences of the launch of the single supervisory mechanism in Europe
AuthorsFiordelisi, F., Ricci, O. and Stentella Lopes, F.
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, while national supervisory authorities 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.

LanguageEnglish
PublisherCambridge University Press
JournalJournal of Financial and Quantitative Analysis
ISSN0022-1090
Publication dates
Print27 Dec 2017
Publication process dates
Deposited22 Aug 2016
Accepted09 Aug 2016
Output statusPublished
Accepted author manuscript
Copyright Statement

This article has been published in a revised form in Journal of Financial and Quantitative Analysis -
https://doi.org/10.1017/S0022109017000886. This version is free to view and download for private research and study only. Not for re-distribution, re-sale or use in derivative works. © Michael G. Foster School of Business, University of Washington 2017

Digital Object Identifier (DOI)https://doi.org/10.1017/S0022109017000886
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https://repository.mdx.ac.uk/item/868vq

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