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Single supervisory mechanism

The SSM gives the European Central Bank certain supervisory powers over the EU financial system.

What the EU is doing and why

The single supervisory mechanism (SSM) is the first component, or ‘pillar’, of the banking union. Under the SSM, the European Central Bank (ECB) is the central prudential supervisor of financial institutions

  • in the euro area
  • in non-euro EU countries that choose to join the SSM

The ECB directly supervises the largest banks, while national supervisors continue to monitor the remaining banks.

The ECB and the national supervisors work closely together to

  • check that banks comply with EU banking rules
  • tackle problems early on

Policy making timeline

  1. 2 July 2014
    Report - Banking supervision
  2. 22 October 2013
    Legislation - Single supervisory mechanism

    Regulation (EU) No 1022/2013 aligns the existing legislation on the establishment of the European Banking Authority (EBA) to the modified framework for banking supervision.

  3. 15 October 2013
    Legislation - Single supervisory mechanism

    Council Regulation (EU) No 1024/2013 establishes the SSM as a system to supervise banks in the euro area and other participating EU countries.

Relevant legislation