The creation of the SSM will ensure effective supervision and a level playing field for euro area banks across countries, which needs to be commensurate with the high level of banking integration in Europe. On 23 October, we announced the details of the comprehensive assessment that we will undertake in the run-up to the SSM. This assessment will include three components.
The first one is a supervisory risk assessment that will address key risks in the banks’ balance sheets, including liquidity, leverage and funding. The second component is the asset quality review that will look at credit exposures, on- and off-balance sheet positions and domestic and non-domestic exposures.