Reporting the progress in the implementation of the Single Supervisory Mechanism SSM

The European Central Bank (ECB) is preparing to take on new banking supervision tasks as part of a Single Supervisory Mechanism (SSM). The ECB will assume its new banking supervision responsibilities in November 2014, 12 months after SSM Regulation creating the supervisor entered into force. The main objectives of the SSM are to ensure the safety and soundness of the European banking system and to increase financial integration and stability in Europe.

The Single Supervisory Mechanism creates a new system of banking supervision that includes the national competent authorities of the participating European Union countries and the ECB.  However, is the ECB the one responsable for the effective and consistent functioning of the SSM, cooperating with the national competent authorities of participating EU countries. 

The European Central Bank (ECB) has issued several reports about the progress in the implementation of the SSM. The last report of may 2014 assured that the establishment of the SSM governance structures, including the related organisational rules and arrangements, has largely been completed.  Moreover, complying with the deadline of 4 May 2014, the SSM Framework Regulation was adopted by the Governing Council on a proposal of the Supervisory Board and published on 25 April 2014, together with a Feedback Statement on the outcome of the consultation and the amendments, which had been introduced. (SSM Quarterly Report 2014 / 2).

Additionally, the establishment of Joint Supervisory Teams (JSTs), which will be the main operational structure for the conduct of supervision by the SSM, has been initiated. It is also reported that there has been significant progress in the conduct of the comprehensive assessment, which required the selection of portfolios subject to examination in the asset quality review. The details of the scenario of the stress test, as decided by the European Banking Authority (EBA), and prepared in cooperation with the European Systemic Risk Board (ESRB) and the ECB, were released on 29 April 2014.  The Supervisory Board approved a Supervisory Reporting Manual, which will provide the data framework to support the conduct of supervision. (SSM Quarterly Report 2014 / 2)

See European Central Bank, SSM Quarterly Report: Progress in the Operational Implementation of the Single Supervisory Mechanism Regulation 2/2014 http://www.ecb.europa.eu/pub/pdf/other/ssmqr20142en.pdf