While political economy considerations explain why, at this point in the euro area’s history, the SSM needs to be hosted by the ECB, we should nevertheless always bear these risks and potential conflicts in mind. Having said this, there is a strong argument for keeping the Resolution Agency clearly separate from the ECB.
Frictions may arise between national and European supervisors, between the various supervisory institutions at the European level or within the resolution regime, where the tasks to be solved are complex and the intricacy of the decision-making process is especially pronounced.