What are the necessary components of a Banking Union? To our mind, a Banking Union requires a Single Supervisory Mechanism (SSM) and a Single Resolution Mechanism (SRM). The Single Supervisory Mechanism A lot of progress has been made on the SSM. Last month, the EU legislature gave the final green light to the Regulation.
The entry into force of the Regulation has allowed us, the ECB, to speed up our internal preparations. We recently communicated on the comprehensive assessment that we will undertake in the run-up to the actual assumption of supervisory tasks, twelve months from now. In a way, this comprehensive assessment is the “founding act” of the SSM.