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The effects of SSM adoption on bank’s profitability : a long-term effects difference-in-difference analysis
This paper analyses the impact of the introduction of the Single Supervisory Mechanism on the profitability of banks. While this topic has not been extensively covered in the literature, it is worthy of attention...
The Single Supervisory Mechanism of the European Banking Union (EBU) is a significant achievement in the long journey of European integration. However, challenges persist in the pillars of bank resolution and the absence of a common European Deposit Insurance Scheme (EDIS). This paper explores the theoretical underpinnings of the European banking integration, analyses the impact of the financial crises that spurred its development, and the historical reasons and shortcomings posed by the strict bail-in requirements stated in the Bank Recovery and Resolution Directive (BRRD). It also addresses concerns surrounding the full implementation of an EDIS, advocating for targeted reforms to overcome existing gaps and enhance European banking integration.
This paper is part of the Banking Supervision Policy Working Paper Series in the context of the SSM-EUI partnership on SSM Banking Supervision Learning Services