An agreement has also been reached among Member States to establish another key element of the Banking Union – the Single Resolution Mechanism. The SSM Regulation also confers the ECB with macro-prudential powers. The ECB may topup specific macro-prudential measures if it considers actions by national designated authorities as insufficient to mitigate systemic risks.
In order to facilitate that process the Basel Committee created an Accord Implementation Group and European supervisors decided to cooperate more closely in order to achieve a greater convergence of supervisory practices. The legal work of implementing the new requirements in EU and national legislation will also be a huge task.