The creation of a European Deposit Guarantee Scheme which the third component has been postponed for the medium term. The creation of the SSM, which we expect to be operational next year, should increase confidence in the euro area banking sector through two main channels. First, the SSM will provide reassurance to investors that supervision is consistent and effective across all participating countries.
The SSM will operate as a single system, with a common supervisory manual applying to all participating banks. The ECB will directly supervise large, systemically relevant banks.