Accountability of the ECB’s supervisory activities (SSM): Evolving and responsive

Published date01 February 2019
DOI10.1177/1023263X18822952
AuthorPhedon Nicolaides
Date01 February 2019
Subject MatterArticles
Article
Accountability of the ECB’s
supervisory activities (SSM):
Evolving and responsive
Phedon Nicolaides*
Abstract
This article develops a theory of accountability as a means of increasing regulatory effectiveness in
complex policy environments and applies it to the supervisory powers that have been assigned to
the European Central Bank through the Single Supervisory Mechanism. It finds that the use of the
Single Supervisory Mechanism by the European Central Bank has been evolving. The Single
Supervisory Mechanism / European Central Bank has expanded and improved the information it
provides to other European Union institutions and the public, and has progressively elaborated the
explanation of its decisions and regulatory instruments. These developments are welcome because
they are indications of an accountable institution that seeks to demonstrate how its actions meet
its obligations. However, there is still lack of a performance benchmark against which the actions of
the Single Supervisory Mechanism /European Central Bank can be evaluated and of expert review
of Single Supervisory Mechanism /European Central Bank decisions. In complex policy environ-
ments it is not possible for outsiders to assess the soundness of regulatory actions without access
to confidential information. Therefore, this article proposes that the European Parliament
establishes a policy or regulatory audit by external experts who can assess such information on a
confidential basis.
Keywords
Accountability, European Central Bank, single supervisory mechanism, supervision, regulation
* Professor at University of Maastricht, The Netherlands; and College of Europe, Bruges, Belgium.
Corresponding author:
Phedon Nicolaides, University of Maastricht, Bouillonstraat, Maastricht 6200 MD, The Netherlands.
E-mail: phedon.nicolaides@maastrichtuniversity.nl
Maastricht Journal of European and
Comparative Law
2019, Vol. 26(1) 136–150
ªThe Author(s) 2019
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sagepub.com/journals-permissions
DOI: 10.1177/1023263X18822952
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