The term Banking Union encompasses a number of regulatory initiatives, but it really has two key elements: a Single Supervisory Mechanism (SSM) and a Single Resolution Mechanism (SRM). These are complements and progress on both in parallel is essential. As regards the SSM, close cooperation has now been established between the ECB and the National Competent Authorities (NCA) and preparatory work is well underway.
Among other things, this work includes developing a common supervisory approach and preparing for the comprehensive assessment of all banks that will come under direct ECB supervision, as demanded by the SSM Regulation. Let me say a few words on these two issues.