European Business Organization Law Review

, Volume 16, Issue 3, pp 547–574 | Cite as

Third Parties in the European Banking Union: Regulatory and Supervisory Effects on Private Law Relationships Between Banks and their Clients or Creditors

  • Florian MösleinEmail author


Third parties (like clients or creditors) are inevitably affected by banking regulation and supervision, even if the respective measures may formally only take effect between supervisory authorities and supervised financial institutions. From a legal perspective, those third party effects raise questions of contractual sanctions, the standing of private plaintiffs and potential liability for defective supervision. With the creation of the Banking Union, the same questions will henceforth arise at the European rather than the national level. Accordingly, respective answers need to take the traditional doctrines on direct and indirect horizontal effects of European law into thorough consideration. Starting with overviews of these effects and the general architecture of the European Banking Union, the present paper explores potential third party effects of that Banking Union on two different levels, namely with respect to supervisory policies and regulations, and in relation to specific supervisory measures. In accordance with the established case law of the European Court of Justice, the assessment on both levels requires careful consideration of the spirit, the general scheme and the wording of the respective provisions of banking supervisory law.


European Banking Union Horizontal effects Direct and indirect effects Single rulebook Banking supervision Single supervisory mechanism 



For very helpful input and comments I wish to thank, in particular, Marija Bartl, Jens-Hinrich Binder, Paul Davies, Christina Eckes, Guido Ferrarini, Stefan Grundmann, Christos Hadjiemmanuil, Martijn Hesselink, Agnieszka Janczuk-Gorywoda, Eljall Tauschinsky and Chiara Zilioli. Of course, all remaining errors are my responsibility alone.


  1. Andenas M (2000) Liability for supervisors and depositors‘rights—BCCI and the Bank of England in the House of Lords. Eur Bank Financ Law J (Euredia) 3:388–409Google Scholar
  2. Assmann H-D (2011) Das Verhältnis von Aufsichtsrecht und Zivilrecht im Kapitalmarktrecht. In: Burgard U, Hadding W, Mülbert P, Nietsch M, Welter R (eds) Festschrift for U.H. Schneider. Otto Schmidt, Cologne, pp 37–55Google Scholar
  3. Avgerinos Y (2003) Regulating and supervising investment services in the European Union. Palgrave Macmillan, Basingstoke and New YorkCrossRefGoogle Scholar
  4. Babis V (2014) Single rulebook for prudential regulation of banks: mission accomplished? University of Cambridge Working Paper 37, Accessed 22 Apr 2015
  5. Barav A (1974) Direct and individual concern: an almost insurmountable barrier to the admissibility of individual appeal to the EEC Court. Common Market Law Rev 11:191–198Google Scholar
  6. Bates C, Gleeson S (2011) Legal aspects of bank bail-ins. Law Financ Mark Rev 5:264–275CrossRefGoogle Scholar
  7. Baumbach A, Hopt KJ (2014) Handelsgesetzbuch (Commentary), 36th edn. Beck, MünchenGoogle Scholar
  8. Binder JH (2005) Keine Staatshaftung für fehlerhafte Bankenaufsicht kraft Gemeinschaftsrechts: Anmerkungen zu EuGH, Urteil vom 12.10.2004, C-222/02—Paul gegen Deutschland. Zeitschrift für Gemeinschaftsprivatrecht (GPR):28–31Google Scholar
  9. Binder JH (2013) Auf dem Weg zu einer europäischen Bankenunion? Erreichtes, Unerreichtes, offene Fragen. Zeitschrift für Bankrecht und Bankwirtschaft (ZBB):297–312Google Scholar
  10. Binder JH (2015a) Resolution planning and structural bank reform within the Banking Union. In: Mayes D, Wood GE, Castaneda J (eds) European Banking Union. Prospects and challenges. Routledge, Abingdon, pp 129–153CrossRefGoogle Scholar
  11. Binder JH (2015b) Resolution: concepts, requirements and tools, chap 2. In: Binder JH, Singh D (eds) Bank recovery and resolution in Europe. Oxford University Press, Oxford (forthcoming). Working Paper, Accessed 22 Apr 2015
  12. Binder JH (2015c) The Banking Union and the governance of credit institutions: a legal perspective. Eur Bus Org Law Rev 16. doi: 10.1007/s40804-015-0015-x
  13. Bliesener DH (2013) Legal problems of bail-ins under the EU’s proposed recovery and resolution directive. In: Dombret A, Kenadjian PS (eds) The Bank Recovery and Resolution Directive: Europe’s solution for ‘too big to fail’? De Gruyter, Berlin, pp 189–227Google Scholar
  14. Bobek M (2014) The effects of EU law in the national legal systems. In: Barnard C, Peers S (eds) European Union law. Oxford University Press, Oxford, pp 140–173Google Scholar
  15. Busch D (2012) Why MiFID matters to private law—the example of MiFID’s impact on an asset manager’s civil liability. Cap Mark Law J 7:386–413CrossRefGoogle Scholar
  16. Busch C, Schulte-Nölke H (eds) (2011) EU compendium—fundamental rights and private law. Sellier, MunichGoogle Scholar
  17. Cherednychenko O (2007) Fundamental rights, contract law and the protection of the weaker party: a comparative analysis of the constitutionalisation of contract law, with emphasis on risky financial transactions. Sellier, MunichGoogle Scholar
  18. Cherednychenko O (2009) European securities law, private law and the investment firm–client relationship. Eur Rev Priv Law 5:925–952Google Scholar
  19. Cherednychenko O (2013) Private law discourse and scholarship in the wake of the Europeanisation of private law. In: Devenney J, Kenny M (eds) The transformation of European private law: harmonisation, consolidation, codification or chaos. Cambridge University Press, Cambridge, pp 148–171CrossRefGoogle Scholar
  20. Cherednychenko O (2014) Financial consumer protection in the EU. Eur Rev Contract Law 10:476–495Google Scholar
  21. Cherednychenko O (2015) Public and private enforcement of European private law in the financial services sector. Eur Rev Priv Law 23:621–647Google Scholar
  22. Clapham A (2006) Human rights obligations of non-state actors. Oxford University Press, OxfordCrossRefGoogle Scholar
  23. Craig PP (1992) Once upon a time in the west: direct effect and the federalization of EEC law. Oxf J Legal Stud 12:453–479CrossRefGoogle Scholar
  24. Craig PP (2009) The legal effects of directives: policy, rules and exceptions. Eur Law Rev 34:349–364Google Scholar
  25. Craig PP, de Burca G (2011) EU law: text, cases, and materials, 5th edn. Oxford University Press, OxfordCrossRefGoogle Scholar
  26. Dalhuisen JHH (2015) The management of systemic risk from a legal perspective. Working Paper, Accessed 22 Apr 2015
  27. Dammann J (2014) The Banking Union: flawed by design. Georget J Int Law 45:1057–1092Google Scholar
  28. Dougan M (2007) When worlds collide! Competing visions of the relationship between direct effect and supremacy. Common Mark Law Rev 44:931–963Google Scholar
  29. Dragomir L (2010) European prudential banking regulation and supervision: the legal dimension. Routledge, AbingdonGoogle Scholar
  30. Einsele D (2014) Kapitalmarktrecht und Privatrecht. Juristenzeitung (JZ) 69:703–714CrossRefGoogle Scholar
  31. Ferran E (2015) The existential search of the European Banking Authority. In: Cambridge Legal Studies Research Paper No. 40/2015, Accessed 25 Sep 2015
  32. Ferran E, Babis V (2013) The European Single Supervisory Mechanism. J Corp Law Stud 13:255–285CrossRefGoogle Scholar
  33. Ferrarini G (2005) Contract standards and the Markets in Financial Instruments Directive (MiFID)—an assessment of the Lamfalussy regulatory architecture. Eur Rev Contract Law 1:19–43CrossRefGoogle Scholar
  34. Ferrarini G, Recine F (2015) The single rulebook and the SSM: should the ECB have more say in prudential rule-making? In: Busch D, Ferrarini G (eds) European Banking Union. Oxford University Press, Oxford, pp 118–154Google Scholar
  35. Ferreira N (2011) Fundamental rights and private law in Europe: the case of tort law and children. Routledge, AbingdonGoogle Scholar
  36. Forschner J (2013) Wechselwirkungen von Aufsichtsrecht und Zivilrecht: Eine Untersuchung zum Verhältnis der §§ 31ff. WpHG und zivilrechtlichem Beratungsvertrag. Mohr Siebeck, TübingenGoogle Scholar
  37. Gaitanides C (2005) Das Recht der Europäischen Zentralbank: Unabhängigkeit und Kooperation in der Europäischen Währungsunion. Mohr Siebeck, TübingenGoogle Scholar
  38. Goldman AH (2001) Practical rules: when we need them and when we don’t. Cambridge University Press, CambridgeCrossRefGoogle Scholar
  39. Gordon JN, Ringe WG (2015) Bank resolution in Europe: the unfinished agenda of structural reform. In: Busch D, Ferrarini G (eds) European Banking Union. Oxford University Press, Oxford, pp 500–523Google Scholar
  40. Grigoleit HC (2013) Anlegerschutz: Produktinformationen und Produktverbote. Zeitschrift für das gesamte Handelsrecht (ZHR) 177:264–309Google Scholar
  41. Grundmann S (ed) (2008) Constitutional values and European contract law. Kluwer, Alphen aan den RijnGoogle Scholar
  42. Grundmann S (2011) Inter-Instrumental-Interpretation: Systembildung durch Auslegung im Europäischen Unionsrecht. Rabels Zeitschrift für ausländisches und internationales Privatrecht (RabelsZ) 75:882–932CrossRefGoogle Scholar
  43. Grundmann S (2012) European company law—organization, finance and capital markets, 2nd edn. Intersentia, CambridgeGoogle Scholar
  44. Grundmann S (2013) The Bankinter case on MIFID regulation and contract law. Eur Rev Contract Law 9:267–280CrossRefGoogle Scholar
  45. Grundmann S (2015) Bank—und Börsenrecht. In: Ebenroth CT, Boujong K, Joost D, Strohn J (eds) Handelsgesetzbuch (commentary), vol 2, 3rd edn. Beck, MünchenGoogle Scholar
  46. Habersack M, Mayer C (1999) Die überschießende Umsetzung von Richtlinien: Normauslegung und Rechtsweg im Grenzbereich zwischen deutschem und europäischen Privatrecht. Juristenzeitung (JZ) 913–921Google Scholar
  47. Häde U (2005) Keine Staatshaftung für mangelhafte Bankenaufsicht. Europäische Zeitschrift für Wirtschaftsrecht (EuZW) 16:39–41Google Scholar
  48. Hadjiemmanuil C (1997) Civil liability of regulatory authorities after the Three Rivers case. Public Law 32:32–42Google Scholar
  49. Hartkamp AS (2010) The effect of the EC Treaty in private law: on direct and indirect horizontal effects of primary Community law. Eur Rev Priv Law 18:527–548Google Scholar
  50. Hartkamp AS (2012) European law and national private law: effect of EU law and European human rights law on legal relationships between individuals. Kluwer, DeventerGoogle Scholar
  51. Herresthal C (2013) Enthält die EGRL 39/2004 (MiFID) Vorgaben für das nationale Vertragsrecht im Zusammenhang mit der Kapitalanlageberatung? Zeitschrift für Wirtschaftsrecht (ZIP) 1420–1422Google Scholar
  52. Hesselink MW (2003) The horizontal effect of social rights in European contract law. Europa e diritto privato 1:1–18Google Scholar
  53. Hesselink MW (2013) The general principles of civil law. In: Lekzykiewicz D, Weatherill S (eds) The involvement of EU law in private law relationships. Hart, Oxford and Portland, pp 131–180Google Scholar
  54. Hopt KJ (1975) Der Kapitalanlegerschutz im Recht der Banken. Beck, MünchenGoogle Scholar
  55. Joosen B (2015) Regulatory capital requirements and bail in mechanisms. In: Haentjens M, Wessels B (eds) Research handbook on crisis management in the banking sector. Edward Elgar, Cheltenham, pp 175–235CrossRefGoogle Scholar
  56. Kaczorowska A (2013) European Union law, 3rd edn. Routledge, AbingdonGoogle Scholar
  57. Lackhoff K (2015) The Single Supervisory Mechanism—a practitioner’s guide. Beck, MünchenGoogle Scholar
  58. Lastra RM (2013) Banking union and single market: conflict or companionship? Fordham Int Law J 36:1190–1224Google Scholar
  59. Lehmann M, Manger-Nestler C (2014) Einheitlicher Europäischer Aufsichtsmechanismus: Bankenaufsicht durch die EZB. Zeitschrift für Bankrecht und Bankwirtschaft (ZBB) 2–21Google Scholar
  60. Lekzykiewicz D, Weatherill S (eds) (2013) The involvement of EU law in private law relationships. Hart, Oxford and PortlandGoogle Scholar
  61. Levi LM (2013) The European Banking authority: legal framework, operations and challenges ahead. Tulane Eur Civil Law Forum 28:51–101Google Scholar
  62. Louis JV (1998) A legal and institutional approach for building a Monetary Union. Common Market Law Rev 35:33–76CrossRefGoogle Scholar
  63. Louis JV (2004) The Economic and Monetary Union: law and institutions. Common Mark Law Rev 41:575–608Google Scholar
  64. Lutter M (2005) Zur überschießenden Umsetzung von Richtlinien in der EU. In: Söllner A, Gitter W, Waltermann R, Giesen R, Ricken O (eds) Gedächtnisschrift für Meinhard Heinze. Beck, München, pp 571–584Google Scholar
  65. Mak C (2008) Fundamental rights in European contract law: a comparison of the impact of fundamental rights on contractual relationships in Germany, the Netherlands, Italy and England. Kluwer, Alphen aan den RijnGoogle Scholar
  66. Mayer C, Schürnbrand J (2004) Einheitlich oder gespalten?—Zur Auslegung nationalen Rechts bei überschießender Umsetzung von Richtlinien. Juristenzeitung (JZ) 545–552Google Scholar
  67. Moloney N (2011) The European Securities and Markets Authority and institutional design for the EU financial market—a tale of two competences: Part (1) rule-making. Eur Bus Organ Law Rev 12:41–96CrossRefGoogle Scholar
  68. Moloney N (2014a) EU securities and financial markets regulation, 3rd edn. Oxford University Press, OxfordGoogle Scholar
  69. Moloney N (2014b) European Banking Union: assessing its risks and resilience. Common Mark Law Rev 51:1609–1670Google Scholar
  70. Mülbert PO (2006) The eclipse of contract law in the investment firm-client-relationship: the impact of the MiFID on the law of contract from a German perspective. In: Ferrarini G, Wymeersch E (eds) Investor protection in Europe: corporate law making, the MiFID and beyond. Oxford University Press, Oxford, pp 299–320CrossRefGoogle Scholar
  71. Nozick R (1993) The nature of rationality. Princeton University Press, PrincetonGoogle Scholar
  72. Payne J (2014) Deposit protection schemes: an analysis of the EU position. Oxford Legal Studies Research Paper No. 65, Accessed 22 Apr 2015
  73. Poli S (2012) The legal standing of private parties in the area of state aids after the appeal in Commission v. Kronoply/Kronotex. Legal Issues Eur Integr 39:357–379Google Scholar
  74. Prechal S (2005) Directives in EC law, 2nd edn. Oxford University Press, OxfordGoogle Scholar
  75. Riehm T (2006) Die überschießende Umsetzung vollharmonisierender EG-Richtlinien im Privatrecht. Juristenzeitung (JZ) 1035–1045Google Scholar
  76. Sacarcelik O (2013) Europäische Bankenunion: Rechtliche Rahmenbedingungen und Herausforderungen der einheitlichen europäischen Bankenaufsicht. Zeitschrift für Bank—und Kapitalmarktrecht (BKR) 353–360Google Scholar
  77. Safjan M, Miklaszewicz P (2010) Horizontal effects of the general principles of EU law in the sphere of private law. Eur Rev Priv Law 18:475–486Google Scholar
  78. Schmolke KU (2005) Der Lamfalussy-Prozess im Europäischen Kapitalmarktrecht—eine Zwischenbilanz. Neue Zeitschrift für Gesellschaftsrecht (NZG) 912–919Google Scholar
  79. Schmolke KU (2006) Die Einbeziehung des Komitologieverfahrens in den Lamfalussy-Prozess: Zur Forderung des Europäischen Parlaments nach mehr Entscheidungsteilhabe. Europarecht (EuR) 432–448Google Scholar
  80. Schneider UH (2013) Inconsistencies and unsolved problems in the European Banking Union. Europäische Zeitschrift für Wirtschaftsrecht (EuZW) 452–457Google Scholar
  81. Schnorbus Y (2001) Autonome Harmonisierung in den Mitgliedstaaten durch die Inkorporation von Gemeinschaftsrecht. Rabels Zeitschrift für ausländisches und internationales Privatrecht (RabelsZ) 65:654–705CrossRefGoogle Scholar
  82. Schwark E (2010) Vorbemerkung zu §§ 31 ff. WpHG. In: Schwark E, Zimmer D (eds) Kapitalmarktrechts-Kommentar, 4th edn. Beck, MünchenGoogle Scholar
  83. Selmayr M (1999) Die Wirtschafts—und Währungsunion als Rechtsgemeinschaft. Archiv des öffentlichen Rechts (AöR) 124:357–399Google Scholar
  84. Svetiev Y, Ottow A (2014) Financial supervision in the interstices between private and public law. Eur Rev Contract Law 10:496–544CrossRefGoogle Scholar
  85. Tison M (2004) Challenging the prudential supervisor: liability versus (regulatory) immunity—lessons from the EU experience for Central and Eastern European countries. In: Balling M, Lierman F, Mullineux A (eds) Financial markets in Central and Eastern Europe: stability and efficiency. Routledge, Abingdon, pp 133–165Google Scholar
  86. Tison M (2005) Do not attack the watchdog! Banking supervisor’s liability after Peter Paul. Common Market Law Rev 42:639–675Google Scholar
  87. Tison M (2010) The civil law effects of MiFID in a comparative law perspective. In: Grundmann S, Haar B, Merkt H, Mülbert PO, Wellenhofer M (eds) Festschrift for K.J. Hopt. De Gruyter, Berlin/New York, pp 2621–2640Google Scholar
  88. Tröger T (2014) The single supervisory mechanism—panacea or quack banking regulation? Preliminary assessment of the new regime for the prudential supervision of banks with ECB involvement. Eur Bus Organ Rev 15:449–497CrossRefGoogle Scholar
  89. Türk AH (2009) Judicial review in EU law. Edward Elgar, CheltenhamCrossRefGoogle Scholar
  90. Usher JA (2003) Direct and individual concern—an effective remedy or a conventional solution? Eur Law Rev 5:575–600Google Scholar
  91. van Cleynenbreugel P (2014) Market supervision in the European Union: integrated administration in constitutional context. Brill, LeidenCrossRefGoogle Scholar
  92. van Gerven W (1976) The legal protection of private parties in the law of the European Economic Community. In: Jacobs F (ed) European law and the individual. North Holland, Amsterdam, pp 1–17Google Scholar
  93. Winter JA (1999) The rights of complainants in state aid cases: judicial review of Commission decisions adopted under Article 88 (ex 93) EC. Common Mark Law Rev 36:521–568CrossRefGoogle Scholar
  94. Witte A (2014) The application of national banking supervision law by the ECB: three parallel modes of executing EU law? Maastricht J Eur Comp Law 21:89–109Google Scholar
  95. Wojcik KP, Ceyssens J (2014) Der einheitliche EU-Bankenabwicklungsmechanismus: Vollendung der Bankenunion, Schutz des Steuerzahlers. Europäische Zeitschrift für Wirtschaftsrecht (EuZW) 893–897Google Scholar
  96. Wolfers B, Voland T (2014a) Europäische Zentralbank und Bankenaufsicht—Rechtsgrundlage und demokratische Kontrolle des Single Supervisory Mechanism. Zeitschrift für Bank—und Kapitalmarktrecht (BKR) 177–185Google Scholar
  97. Wolfers B, Voland T (2014b) Level the playing field: the new supervision of credit institutions by the European Central Bank. Common Mark Law Rev 51:1463–1495Google Scholar
  98. Woods L, Watson P (2014) Steiner & Woods EU law, 12th edn. Oxford University Press, OxfordGoogle Scholar
  99. Wymeersch E (2012a) The European Banking Union: a first analysis. Financial Law Institute Working Paper 7, Accessed 22 Apr 2015
  100. Wymeersch E (2012b) The regulation of private equity, hedge funds and state funds. In: Brown KB, Snyder DV (eds) General reports of the XVIIIth congress of the International Academy of Comparative Law. Springer, Dordrecht, pp 273–293Google Scholar
  101. Wymeersch E (2014) The Single Supervisory Mechanism or ‘SSM’, Part One of the Banking Union. Financial Law Institute Working Paper 7, Accessed 22 Apr 2015
  102. Zavvos GS, Kaltsouni S (2015) The Single Resolution Mechanism in the European Banking Union: legal foundation, governance structure and financing. In: Haentjens M, Wessels B (eds) Research handbook on crisis management in the banking sector. Edward Elgar, Cheltenham, pp 117–149CrossRefGoogle Scholar
  103. Zilioli C, Selmayr M (2001) The law of the European Central Bank. Hart, Oxford and PortlandGoogle Scholar

Copyright information

© T.M.C. Asser Press 2015

Authors and Affiliations

  1. 1.Faculty of LawPhilipps-University of MarburgMarburgGermany

Personalised recommendations