The Single Supervisory Mechanism (SSM) officially entered into operation in November 2014 and refers to the system of banking supervision in the euro area, as well as in those EU Member States outside the euro area that choose to participate in it.
It comprises the ECB and the national supervisory authorities of the participating countries, which cooperate closely on the basis of a single set of rules and requirements.
The European Central Bank is responsible for the effective and consistent functioning of the SSM, with a view to carrying out intrusive and effective banking supervision, contributing to the safety and soundness of the banking system and the stability of the financial system.
The main aims of the SSM are to:
- ensure the safety and soundness of the European banking system;
- increase financial integration and stability; and
- ensure consistent supervision.