Purpose of the single supervisory mechanism

The single supervisory mechanism (SSM) is the first 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 the national supervisors continue to monitor the remaining banks.

The ECB and the national supervisors work closely together to

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

EU regulations

The EU has adopted a legislative package to set up the single supervisory mechanism. 


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