Ricerc@Sapienza

The article traces the evolution of the regulation of banks in Italy from the banking law of 1936 to the recent changes made at European level with the banking union project. Until the 1980s the banking system was characterised by a low level of competition combined with a high level of stability. Banking crises were resolved with the guidance of the Bank of Italy without causing losses to depositors. Following the implementation of the banking union, the regulatory model changed radically.

The Single Supervisory Mechanism (SSM), which is a pillar of the banking union, was established in response to the financial crisis that began in 2008. Like other instruments launched in emergency situations, the SSM contains some critical points, arising from the fact that it was created, rather quickly, to deal with a temporary situation.