Banking supervision

On 4 November 2014 the European Central Bank took over supervisory responsibility for banks in the euro area. European banking supervision aimed to rebuild trust and bolsters the safety and soundness of the banking system.

The Single Supervisory Mechnaism (SSM) was one of the two pillars of the EU banking union, along with the Single Resolution Mechanism (SRM).

European banking supervision was an important first step towards EU banking union. Together with the Single Resolution Mechanism, it would help to make the banking sector more transparent, unified and safer.

What is the ECB’s role?
As an independent EU institution, the ECB oversees banking supervision from a European perspective by:

+ establishing a common approach to day-to-day supervision
+ taking harmonised supervisory actions and corrective measures
+ ensuring the consistent application of regulations and supervisory policies

The ECB, in cooperation with the national supervisors, is responsible for ensuring European banking supervision is effective and consistent.

ESO: Key Source: European Banking Union http://www.europeansources.info/record/european-banking-union-2/

ESO: Background information: ECB takes control as EU bank supervisor http://www.europeansources.info/record/ecb-takes-control-as-eu-bank-supervisor/

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