Main immediate tasks of the SSM One of the main priorities for the ECB during 2013 is ensuring the operationalization of the SSM, so that it can assume its responsibilities effectively and efficiently. Building a strong centre Creating a strong centre in a decentralised system such as the SSM, will be crucial to ensure the ECB’s reputation is safeguarded.
The monetary policy function of the central bank requires that it maintains a high level of credibility. This is essential to keep anchored inflation expectations. When the central bank is responsible for both price stability and banking supervision, weaknesses in supervision could damage the reputation of the central bank as a competent monetary authority.