A truly European supervision mechanism weakens the link between banks and national sovereigns. This helps to rebuild trust in Europe's banking sector.
The recent financial crisis has shown how quickly and forcefully problems in the financial sector of one country can spread to another, especially in a monetary union, and how these problems can directly affect citizens across the euro area.
Euro area countries participate automatically.
EU Member States which do not use the euro as their currency can also choose to participate in the Single Supervisory Mechanism (SSM) by their national supervisors entering into "close cooperation" with the ECB.
For the non-participating EU countries and countries outside the EU, the ECB and the relevant national supervisory authorities may conclude memoranda of understanding describing how they will cooperate in carrying out supervisory tasks.
Banking groups which include a number of individual banks are counted as one institution.
The ECB is directly supervising 119 significant banks, representing almost 82% of total banking assets in the euro area.
The ECB indirectly supervises less significant banks in the participating countries, which number approximately 3,100 in the euro area. However, the ECB can decide at any time to take over the direct supervision of any one of these banks to ensure consistent application of high supervisory standards.
You are encouraged to report to the ECB any suspected breach of EU laws related to the ECB’s supervisory tasks. This covers any breaches allegedly committed by supervised banks, by national supervisors or by the ECB itself. All information provided will be treated in the strictest confidence.
Report a breach
Tasks such as consumer protection and the fight against money laundering remain a national competence. Any breaches of laws relating to these areas should be reported to the national supervisor.
National authorities in charge of consumer protection
To ensure the separation of supervisory and monetary policy tasks, the Supervisory Board plans and carries out the ECB’s supervisory tasks. This includes proposing draft supervisory decisions, which are put before the Governing Council of the ECB for adoption.
Building the Single Supervisory Mechanism (SSM) has required changes to the ECB’s organisational structure, including the creation of new business areas. Four new Directorates General and a Secretariat are solely dedicated to banking supervision.
Existing ECB functions and services are providing additional support to the SSM. These include IT, HR, budget, statistics, communications, legal services and administration.Organisational structure at the ECB
The Joint Supervisory Teams (JSTs) are one of the main forms of cooperation between the ECB and national supervisors. For each significant bank, a team has been formed of staff members of the national supervisors involved in supervising that bank and staff members of the ECB; the team is coordinated by the ECB with the assistance of sub-coordinators from each national supervisor.
The JSTs carry out ongoing supervision of the significant banks. Their main tasks are to perform the risk analysis of the supervised entity or group and propose the supervisory programme and the appropriate supervisory actions.
Please contact your bank directly.
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