ECON has published draft reports on the Council Regulation that will confer powers of bank prudential supervision on the European Central Bank (ECB) and on the proposed Regulation amending the European Banking Authority’s (EBA) Regulation in relation to this. The first draft report argues in favour of a right of direct intervention for the ECB, but its Supervisory Board must be accountable to the European and national parliaments. It stresses that the Single Supervisory Mechanism (SSM) must be as compatible as possible with the internal market, not encroaching upon EBA’s role, and as attractive as possible for non-Eurozone member states to opt in. The second draft report calls into question the attractiveness of the “opt-in”, given the absence of safeguards for non-Eurozone members within the ECB mechanism. For this reason, and in order to construct a truly European SSM, it proposes strengthening EBA’s power of binding mediation. EBA would ensure that all authorities, including the ECB for Eurozone members, plan and execute supervisory tasks in accordance with the Single Rule Book.

(Source: ECON Draft Report on ECB Supervisory Tasks  and ECON Draft Report on EBA Under the SSM)