ECB takes control as EU bank supervisor

On 4 November 2014, the European Central Bank fully assumed supervisory tasks and responsibilities in the framework of the Single Supervisory Mechanism (SSM).

The SSM is a new system of banking supervision for Europe, comprising the ECB and the national supervisory authorities of the participating countries.

Its main aims are to:

+ ensure the safety and soundness of the European banking system
+ increase financial integration and stability
+ ensure consistent supervision

The ECB will directly supervise 120 significant banking groups, which represent 82% (by assets) of the euro area banking sector. For all other 3,500 banks the ECB will also set and monitor the supervisory standards and work closely with the national competent authorities in the supervision of these banks.

The SSM is one of the two pillars of the EU banking union, along with the Single Resolution Mechanism.

• Primary Source

Website: ECB: Banking Supervision https://www.bankingsupervision.europa.eu/home/html/index.en.html

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

ESO: Background information: EBA publishes 2014 EU-wide stress test results http://www.europeansources.info/record/eba-publishes-2014-eu-wide-stress-test-results/

EurActiv, 04.11.14: Bank supervisor starts work in eurozone http://www.euractiv.com/sections/euro-finance/bank-supervisor-starts-work-eurozone-309721

European Commission: RAPID: STATEMENT/14/1360: Commissioner Jonathan Hill welcomes the European Central Bank's new role as Single Supervisor in the Banking Union http://europa.eu/rapid/press-release_STATEMENT-14-1360_en.htm

Deutsche Welle [Opinion], 03.11.14: Opinion: ECB becomes Banca Schizophrenia http://dw.de/p/1Df1p

ECB: Press Release, 04.11.14: ECB assumes responsibility for euro area banking supervision https://www.ecb.europa.eu/press/pr/date/2014/html/pr141104.en.html

Euro|Topics: Who's saying what: Europe's banks under supervision http://www.eurotopics.net/en/home/debatten/links-2014-10-bankenaufsicht/

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