Moreover, building on the ﬁnancial market reforms agreed upon at the international level by the G20, the European institutional structure has been adjusted to make crises less likely and less costly. The European Stability Mechanism (ESM) and a resolution regime for distressed banks are key components of the post-crisis institutional architecture.
In 2014, the institutional setup of the European supervision changed fundamentally with the establishment of the Banking Union: Banking supervision of euro area banks was assigned to the Single Supervisory Mechanism (SSM) within the ECB which directly  supervises systemically important banks of all member states. The Single Resolution Board was established as the central resolution authority.