A single European Banking Supervisor: an anachronistic move?

Abstract: Following the European sovereign debt crisis and the detrimental consequences this had for the European financial markets, Europe found itself at a crossroads, with an uncertain future ahead. As the choice was between fragmentation of the Member States or embarking on a journey almost as meaningful as a common currency, the 28 Member States decided on further integration, thereby establishing joint supervision for the euro area financial institutions and granting the ECB exclusive powers in its role as supervisor. The decision was supported by a unanimous decision of the European Council which pushed for fast action, and within only two years the mechanism began operating. Applying the theories of legal pluralism and globalization this research paper evaluates different arguments for and against a common banking supervision and tries to establish whether the relevant institutions and Member States are in fact ready for this rapid development. Using evaluation research as the methodological foundation for the scientific research a conclusion was reached based on interviews, media content analysis and statistics, providing an answer to the question of whether the mechanism is anachronistic or in fact a necessary step for the future of Europe.