The European Central Bank and the European Macroeconomic Constitution Book contents
- The European Central Bank and the European Macroeconomic Constitution
- Cambridge Studies in European Law and Policy
- The European Central Bank and the European Macroeconomic Constitution
- Copyright page
- Contents
- Figures
- Series Editors’ Preface
- Preface and Acknowledgements
- Abbreviations
- 1 Introduction: A Supranational Central Bank as a Subject
- Part I The ECB as the Central Bank of the European Macroeconomic Constitution
- Part II Crises, ECB Measures and the Macroeconomic Constitution
- 5 ECB Monetary Policy during the Financial Crisis
- 6 The Prelude to the Sovereign Debt Crisis: Events, ECB Verbal Interventions and EU Rescue Programmes
- 7 Selective Government Bond Purchases
- 8 The ECB’s Quantitative Easing
- 9 The Banking Union: The ECB Takes Over Banking Supervision
- 10 ECB Measures during the Covid-19 Pandemic
- Part III The ECB from a Central Bank of Stability to a Central Bank of Crisis
- Bibliography
- Index
9 - The Banking Union: The ECB Takes Over Banking Supervision
from Part II - Crises, ECB Measures and the Macroeconomic Constitution
Published online by Cambridge University Press: 15 September 2022
- The European Central Bank and the European Macroeconomic Constitution
- Cambridge Studies in European Law and Policy
- The European Central Bank and the European Macroeconomic Constitution
- Copyright page
- Contents
- Figures
- Series Editors’ Preface
- Preface and Acknowledgements
- Abbreviations
- 1 Introduction: A Supranational Central Bank as a Subject
- Part I The ECB as the Central Bank of the European Macroeconomic Constitution
- Part II Crises, ECB Measures and the Macroeconomic Constitution
- 5 ECB Monetary Policy during the Financial Crisis
- 6 The Prelude to the Sovereign Debt Crisis: Events, ECB Verbal Interventions and EU Rescue Programmes
- 7 Selective Government Bond Purchases
- 8 The ECB’s Quantitative Easing
- 9 The Banking Union: The ECB Takes Over Banking Supervision
- 10 ECB Measures during the Covid-19 Pandemic
- Part III The ECB from a Central Bank of Stability to a Central Bank of Crisis
- Bibliography
- Index
Summary
The chapter analyses how the ECB was granted responsibility over prudential supervision as part of the EU banking union. This changed the EU perspective on financial services from internal market issue to a macroeconomic financial stability issue. The ECB now supervises directly the largest banking groups in the euro area and monitors the supervision of all other banks as well. The ECB’s role in the banking union raises new types of constitutional questions and requires a different analytical framework. A formal legal assessment, particularly on the legal basis for conferring specific tasks on the ECB under Article 127(6) TFEU, is complemented with a broader economic constitutional analysis. Here, the context in which the banking union was initiated is particularly important. The chapter also discusses the merits and caveats of combining banking supervision and monetary policy, where the conflict of interest is the main caveat particularly for an independent institution such as the ECB. It is also concluded that the supervision could return to the internal market setting and again be separated from monetary policy in the future.
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- The European Central Bank and the European Macroeconomic ConstitutionFrom Ensuring Stability to Fighting Crises, pp. 215 - 238Publisher: Cambridge University PressPrint publication year: 2022