Should non-euro area countries join the single supervisory mechanism?

by Zsolt Darvas on 15th March 2013

Zsolt Darvas presents the main arguments of the latest Policy Contribution he coauthored with Deputy Director Guntram Wolff.

Looking into the pros and cons of joining the Single Supervisory Mechanism, the scholars conclude non-euro area countries would benefit from joining, even with the uncertainty about other elements of the banking union still in the air. They argue that the SSM can foster financial integration and increase the quality of supervision, and that as the first step for a banking union, it is beneficial regardless of the crisis.