On 4 December 2014, Parliamentary State Secretary Steffen Kampeter welcomed Danièle Nouy, head of Europe’s new banking regulator, to the German Finance Ministry to discuss Europe’s Single Supervisory Mechanism.
The creation of a banking union in Europe is regarded as one of the most important European projects undertaken since the introduction of the euro. The banking union is vital for the lasting stabilisation of financial markets – and European economic and monetary union as a consequence. Europe’s banking sector is highly integrated, which means that cross-border banking supervision and resolution is an absolute necessity in terms of boosting confidence in European banks overall. This is an essential precondition for banks to fulfil their macroeconomic task of supplying adequate credit to the real economy and thus facilitating economic growth in Europe.
The European Central Bank (ECB) took over responsibility for the Single Supervisory Mechanism (SSM) at the beginning of November 2014. The ECB has thus assumed supervisory responsibility for banks in the euro area. It now directly supervises those banks and banking groups that are considered to be “significant” institutions. These banks account for roughly 85% of total banking assets in the euro area.
As part of the Finance Ministry in Dialogue series of events, the German Finance Ministry invites internationally renowned financial institutions representatives and economists to join us in a debate. In so doing, we are creating a forum for exchanging ideas between policymakers, academics and practitioners by examining the current fiscal policy challenges.