Under the Single Supervisory Mechanism (SSM), introduced in 2014, systemically important euro area banks with combined assets of about 21,000 billion euros are directly supervised by the ECB. We examine from a static and a dynamic perspective how this fundamental shift to unified supervision...

The paper analyses the role of national central banks (NCBs) in the governance of the European System of Central Banks (ESCB), NCBs are the owners of the European Central Bank (ECB), and their governors dominate the ECB's Governing Council, but in monetary policy operations, NCBs are...