Single Supervisory Mechanism

E82771

The Single Supervisory Mechanism is the European banking supervision framework under the European Central Bank that directly oversees significant banks in participating EU countries to ensure the safety and stability of the banking system.


Statements (49)
Predicate Object
instanceOf banking supervision framework
pillar of the European Banking Union
administeredBy European Central Bank
aimsTo break the bank-sovereign nexus
harmonise banking supervision in the euro area
appliesTo euro area member states
non-euro EU member states that choose to participate
cameIntoForce 2014-11-04
canImpose administrative sanctions on supervised entities
prudential requirements on banks
canPerform on-site inspections
stress tests
supervisory reviews
cooperatesWith national competent authorities of participating member states
coversSector banking sector
establishedBy European Union
geographicalArea participating EU member states
governedByBody Supervisory Board of the European Central Bank
headquarteredIn Frankfurt am Main
implementedBy European Central Bank
national competent authorities
introducedFollowing European sovereign debt crisis
keyComponent direct ECB supervision of significant banks
indirect ECB oversight of national competent authorities
languageOfOperation English
legalBasis Council Regulation (EU) No 1024/2013
Regulation (EU) No 1022/2013
monitoredBy European Court of Auditors (in certain aspects)
objective ensure consistent supervision of banks in participating states
ensure safety and soundness of the European banking system
increase financial stability in the EU
overseesIndirectly less significant credit institutions
partOf European Banking Union
relatedTo European Deposit Insurance Scheme (proposed)
Single Resolution Mechanism
reportsTo Governing Council of the European Central Bank
scopeIncludes assessment of bank capital adequacy
assessment of bank liquidity
assessment of bank risk management
prudential supervision of banks
shortName SSM
supervises significant credit institutions
supervisoryThresholdCriterion importance for the economy of the EU or a member state
significant cross-border activities
size of bank assets
usesInstrument ECB supervisory decisions
Joint Supervisory Teams
usesSupervisoryModel single system of financial supervision
website https://www.bankingsupervision.europa.eu


Please wait…