In this paper we investigate whether the banks which fall under direct supervision by the European Central Bank (ECB) are more likely to be considered more stable and trustworthy by the depositors due to the stricter supervisory activities performed since the implementation of the Single Supervisory Mechanism (SSM). Under the SSM, significant banks switched from national supervisors to ECB, whereas the remaining banks remained under national supervisory authorities (NSAs). Using the difference-in-difference (DID) method, we have found evidence of increased depositors’ trust in significant banks after the SSM implementation. Additionally, in anticipation of the SSM launch and the comprehensive assessment, we have found evidence of increased depositors’ trust in the banks which were expected to be supervised by the ECB.

Rights

URN

URN:NBN:SI:DOC-UTGLWI98

COBISSID

198081027

DOI

10.15458/2335-4216.1337

Added

18.06.2024

Metadata

Citation

APA:

Popovska, Emilija, Košak, Marko (2024). Implementing the single supervisory mechanism in the euro area. Economic and business review, volume 26, iss. 2, article 3, str. 104-129. URN:NBN:SI:DOC-UTGLWI98 from http://www.dlib.si

MLA:

Popovska, Emilija, Košak, Marko. "Implementing the single supervisory mechanism in the euro area." Economic and business review volume 26. iss. 2. article 3 (2024) str. 104-129.
<http://www.dlib.si/?URN=URN:NBN:SI:DOC-UTGLWI98>

Economic and business review
1999-
(Assembly record)