site.btaExperts: Bulgaria Should Prioritize Entry to Single Supervisory Mechanism

NW 14:25:31 18-11-2014
SN1425NW.111
111 ECONOMY-CONFERENCE

Experts: Bulgaria
Should Prioritize
Entry to Single Supervisory Mechanism


Sofia, November 18 (BTA) - Entry to EU Single Supervisory
Mechanism (SSM) should be a priority for Bulgaria. Economists
and analysts rallied behind the idea at a conference here
Tuesday on future economic challenges and Bulgaria's EU
membership, organized by the Economic Policy Institute and the
Hanns Seidel Foundation.

Kaloyan Stoyanov of Sofia University said that advantages from
SSM entry will outweigh disadvantages for Bulgaria. He said that
a large number of banks in Europe are subsidiaries of
international banking groups, which raised the need for single
oversight.

The SSM applies only to eurozone members but allows non-eurozone
members to participate too. To this end they should file an
application, citing specific commitments and the European
Central Bank will begin close cooperation with their national
supervisory bodies.

"More Europe, less national sovereignty" is one of the
disadvantages, according to Simeonov. However, advantages will
include increasing banking supervision reputation, easier access
to funding and a possibility for Bulgaria to participate in the
mechanism's governance.

In eight years, the single supervisory mechanism is envisaged to
have available 55 billion euro which will be used to
restructure ailing banks. PK/PP


/СН/