Implementing the single supervisory mechanism in the euro area : effects on deposit structure of banks

Popovska, Emilija (author), Košak, Marko (author)

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.

• Language: English
• Keywords: banking management, banking policy, deposits, interbank deposits, banking supervision, single supervisory mechanism
• Work type: Article
• Typology: 1.01 - Original Scientific Article
• Organization: EF - School of Economics and Business
• Publication status: Published
• Publication version: Version of Record
• Year: 2024
• Number of pages: Str. 104-129
• Numbering: Vol. 26, iss. 2, article no. 3
• PID: 20.500.12556/RUL-164795
• UDC: 336.71
• ISSN on article: 2335-4216
• DOI: 10.15458/2335-4216.1337
• COBISS.SI-ID: 198081027
• Publication date in RUL: 12.11.2024

Record is a part of a journal

• Title: Economic and business review
• Publisher: Ekonomska fakulteta
• ISSN: 2335-4216
• COBISS.SI-ID: 268649216

Licences

• License: CC BY-NC-ND 4.0, Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International
• Link: http://creativecommons.org/licenses/by-nc-nd/4.0/
• Description: The most restrictive Creative Commons license. This only allows people to download and share the work for no commercial gain and for no other purposes.

Secondary language

• Language: Slovenian
• Keywords: bančno poslovanje, bančna politika, depoziti