On 4 September 2014, ECB published the final list of significant credit institutions that it will directly supervise from 4 November 2014.
The 120 significant credit institutions represent almost 85% of total banking assets in the euro area. Almost all of them have been designated as significant due to their size or due to total assets representing more than 20% of GDP. Only three groups are systemically important due to significant cross-border assets:
- Banque Degroof S.A.
- Sberbank Europe AG
- VTB Bank (Austria) AG
The Single Supervisory Mechanism (SSM) presents a form of myopia as a regime aimed at prudential supervision. Since the United Kingdom did not opt-in, important financial institutions operating in London will be outside ECB’s field of vision:
- JP Morgan Chase
- Bank of America
- Goldman Sachs
- Mitsubishi UFJ FG
- Morgan Stanley
More importantly, these institutions were shortlisted by the FSB as Global Systemically Important Banks (G-SIBs), using a methodology developed by the BCBS.
ECB will need to prove shortly that it can assume the role for which it was created: translate extensive supervisory powers on paper to truly effective oversight on the field. Indeed, a Member of the Executive Board of the ECB recently suggested that the next few months will not be at all relaxing.Contact Us