Integration through differentiation: uneasy relations of the (banking) single market and banking u...

This article surveys the uneasy interactions of the (banking) Single Market and the Banking Union in the post-crisis EU. It focuses on the jurisdictional interrelationship between their (formally independent) policy-making centers: the EBA’s Board of Supervisors (EBA Board) - for the former, and the SSM Supervisory Board (SSM Board) - for the latter. It demonstrates that the jurisdictional domains between the EBA Board and the SSM Board are not firmly demarcated, but rather partially overlapping. Such a set-up may possibly result in a creation of a two-tier post-crisis EU bank regulatory and supervisory system, which in the end may impede efforts for constructing a harmonized bank regulatory and supervisory framework in the EU.