Differentiated Integration and the Single Supervisory Mechanism : Which Way Forward for the European Banking Authority?

The establishment of the Single Supervisory Mechanism (SSM), as the first pillar of an EU Banking Union, represents a significant step towards greater integration in banking supervision. However, the scope of the SSM is limited to a group of Member States. Member States such as the UK have insisted that they will not be part of the SSM. These non-participating Member States (NoPS) will nevertheless interact closely with SSM members, notably within the European Banking Authority (EBA). In order to organise their interactions, the EU legislature amended EBA's founding regulation. In particular, it introduced complex voting requirements. The aim of this paper is to reflect on these changes and to consider alternative arrangements for EBA