On 1 July 2020, the European Central Bank (ECB) published for consultation a guide intended to clarify its supervisory approach to consolidation projects involving euro area banks. With the guide the ECB intends to clarify, within the current regulatory framework, the principles underpinning the prudential supervisory approach it follows when determining whether the arrangements implemented by a credit institution resulting from a consolidation ensure the sound management and coverage of its risks. This will increase the ECB’s transparency vis-à-vis the market by helping stakeholders to understand the supervisory expectations aimed at ensuring the safety and soundness of credit institutions resulting from a business combination, particularly when it comes to mergers and acquisitions of supervised entities. The deadline for comments on the consultation is 1 October 2020.