It is based on the idea of harmonised regulatory requirements, such as capital adequacy rules for banks and supervisory practices. Single Supervisory Mechanism (SSM) One of the main pillars of the Banking Union is the Single Supervisory Mechanism (SSM). It ensures consistent, non-biased supervision in all Member States.
The Single Supervisory Mechanism started supervision nearly one year ago and its work is independent and separated from the ECB’s central banking activities. From the banks’ perspective, the introduction of the SSM means numerous changes. I will mention only a few of them. For cross-border banks, operating in multiple countries within the Banking Union, the SSM effectively simplifies their contacts with the authorities.