The Single Supervisory Mechanism, a first step against fragmentation

Supervisory fragmentation is a cause of systemic risk, as cooperation amongst national authorities is bound to fail in crisis events. The situation will be different under the Banking Union when the Single Supervisory Mechanism is in place even if it shows some weaknesses: the Ssm includes elements of cooperation and delegation, which will help the Ecb to perform its tasks as a central supervisor, but could also give rise to conflicts of interest and information asymmetries, being also limited to the Eurozone