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
- 18 April 2023Report - Single supervisory mechanism
- 11 October 2017Report - Single supervisory mechanism
- 2 July 2014Report - Banking supervision
- 22 October 2013Legislation - 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.
- 15 October 2013Legislation - 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.