The Single Supervisory Mechanism is subject to the European banking regulatory framework, which follows the Basel Accords and is harmonised through the single rulebook. This framework applies to all financial institutions in the Single Market.
Basel III is an international regulatory framework that aims to strengthen the regulation, supervision and risk management of the banking sector.
It was developed by the Basel Committee on Banking Supervision and endorsed by the G20 in November 2010.
Basel III is being implemented in Europe through the CRD IV package of EU laws.
The regulatory products of the European Banking Authority (EBA) range from binding technical standards to guidelines, recommendations and opinions. They cover areas such as own funds, recovery and resolution, internal governance and supervisory reporting.
The single rulebook aims to ensure the consistent application of the regulatory banking framework across the EU. It is an interactive online compendium of the CRD IV package and the corresponding technical standards, namely:
It also includes EBA guidelines and related Q&As.
The CRD IV package transposes Basel III standards into EU law and consists of a regulation and a directive. The package entered into force on 1 January 2014. Some of the new provisions will be phased-in between 2014 and 2019.
European Parliament: Background note on CRD IV
European Commission: FAQ on CRD IV and CRR
European Commission: Delegated and implementing acts under CRR and CRD IV
European Commission: Banking Union
European Commission: Banking
The Single Resolution Mechanism Regulation establishes uniform rules and procedures for the resolution of banks within the framework of a Single Resolution Mechanism and a Single Resolution Fund.
The Intergovernmental Agreement on the transfer and mutualisation of contributions to the Single Resolution Fund.
The Bank Recovery and Resolution Directive establishes a framework for the recovery and resolution of banks and investment firms.
The recast of the Directive on Deposit Guarantee Schemes provides better protection for citizens' deposits in the case of bank failures.
The Financial Conglomerates Directive sets out the framework of supplementary supervision of financial entities in a financial conglomerate.