European Constitutional Law Review , , Vol. 14 , Issue 2 , pp. 283 - 310, 2018

United in Diversity? The Relationship between Monetary Policy and Banking Supervision in the Banking Union

Banking Union – Single Supervisory Mechanism – Economic interplay between monetary policy and prudential supervision – Strict separation envisaged by the Single Supervisory Mechanism legal framework – Legal framework does not prevent a more holistic approach – Financial stability is a legitimate consideration for monetary policy-making – Price stability is a legitimate concern for prudential supervision – Challenge to European Central Bank legitimacy and independence – Democratising the European Central Bank