Effective Legal Protection in Banking Supervision: An Analysis of Legal Protection in Composite Administrative Procedures in the Single Supervisory Mechanism

The central question of this research is the way in which effective legal protection can be ensured in case of composite administrative procedures within the Single Supervisory Mechanism (SSM). The SSM is a system for banking supervision that consists of both the European Central Bank (ECB) and National Competent Authorities (NCAs). The ECB and NCAs closely cooperate within this system to ensure an effective banking supervision. This interconnectedness must ensure that the ECB and NCAs can effectively carry out banking supervision, but it also results in complex administrative procedures in a mixed EU-national legal order. The current system of legal protection does not seem to be properly-equipped to face this complex new administrative reality. The tension between effective implementation of EU law (i.e. effective banking supervision) and effective legal protection is addressed in this research. The legal protection’s effectiveness is analysed in this research for the following groups of procedures: common procedures; procedures including preparatory measures that are carried out at the national level and that are followed by a final decision at the EU level (bottom-up procedures); procedures including preparatory measures that are carried out at the EU level and that are followed by a final decision at the national level (top-down procedures); and procedures that may end in a sanction of a criminal nature. These assessments are used as a basis for the discussion about the overall challenges and the recommendations that are made in order to improve the effectiveness of legal protection in case of composite administrative procedures.