The European Central Bank (ECB) has published a guide which sets out its approach to banking supervision under the single supervisory mechanism (SSM). In particular the guide sets out:

  • the supervisory principles of the SSM;
  • the functioning of the SSM, including: (i) the distribution of tasks between the ECB and the national competent authorities of participating Member States; (ii) the decision making process within the SSM; (iii) operating structure of the SSM; and (iv) the supervisory cycle of the SSM; and
  • the conduct of supervision in the SSM including: (i) authorisations, acquisitions of qualifying holdings, withdrawal of authorisation; (ii) supervision of significant institutions; (iii) supervision of less significant institutions; and (iv) overall quality and planning control.

The guide also explains the criteria used to assess whether a credit institution falls within the significant or less significant institution category.

The guide is not a legally binding document and is not a substitute for the legal requirements laid down in EU law. In the case of divergences between EU law and the guide, the former prevail.

View ECB guide to banking supervision, 30 September 2014