The European Central Bank (ECB) has published a letter from Danièle Nouy, Chair of the Supervisory Board, to the management of significant banks.
In the letter, Mrs Nouy states that there currently exists a broad variety of practices and requirements for the supervision of significant institutions in participating Member States. In looking to create a level playing field and ensure more effective supervision, the single supervisory mechanism intends to achieve full harmonisation of practices and requirements by developing common methodologies in all relevant supervisory areas and ensuring a smooth transition to new standards.
Mrs Nouy also states that to achieve full harmonisation with minimal disruption in the overall quality of supervision, current processes and practices related to competences now assigned to the ECB will apply until further notice. During this time the ECB will be proactively assessing the merits of different approaches.
View Approach to existing supervisory processes and practices in SSM Member States, 27 January 2015