The ECBs macroprudential tasks and home-host supervision in the SSM: tasks, powers and supervisory gaps

The ECB has been conferred prudential tasks under the SSM Regulation. The exercise of direct prudential powers stemming from Union directly applicable law has been conferred to the ECB. At the same time, the scope of the application of national law by the ECB under Article 4(3) of the SSM Regulation allows the ECB to apply directly national law implementing Union law. This chapter intends to examine the novel topic of application of national law by the ECB and assess the scope, tasks and powers of the ECB in applying national law. The chapter will examine the framework for application of national law and examine the various ways in which the ECB applies national law. In particular, these consist in the application of national law directly and indirectly implementing EU directives and raise questions on the application of national procedural and substantive laws. Finally, the chapter proposes some policy reforms in order to address some issues related to the application of national law by the ECB. These proposals suggest reviews of the applicable Union legislation or regulation and the adoption of ECB policies in certain fields.