The banking union incorporates a Single Supervisory Mechanism (SSM) as well as a single resolution mechanism. Banking supervision is to be based at the ECB and will be launched in the autumn of this year. From a human resources perspective alone, this project is a Herculean task. Some 1,000 new staff will have to be recruited over the course of the year.
However, it is also a major challenge to ensure that all banks in the euro area will, in future, be supervised according to the same high standards. Before the launch of the single supervisor, a comprehensive balance sheet assessment will be conducted for the 128 “significant” banks that will, in future, be supervised directly by the ECB.