Differentiated Governance in the European Banking Union: Single Mechanisms, Joint Teams, and Opting-ins
This article examines differentiated governance across and within the existing pillars of the Banking Union (BU): the Single Supervisory Mechanism (SSM) and the Single Resolution Mechanism (SRM). Governance covers the decision-making rules, institutional apparatus, and processes – taking due account of the issues created by the incompleteness of the BU. In the daily supervisory and resolution actions, joint teams constitute a significant progress for cooperation, exchange of information and coordination of the work carried in the BU at an operational level, which plays an integrative factor in the systems’ governance. Moreover, differentiated governance exists within the systems for banking supervision and bank resolution, but also in its immediate surroundings, that is the consideration for the ‘ins’, ‘outs’, and ‘opting-ins’ Member States that are joining the BU through close cooperation.