The Single Supervisory Mechanism (SSM) establishes a new financial supervision system consisting of the European Central Bank (ECB) and the national competent authorities (NCAs) of the participating European Union (EU) countries.
Its main objectives are to guarantee the security and solidity of the European banking system and to increase financial integration and stability in Europe.
It is the first step towards the so-called “Banking Union,” of which the Single Resolution Mechanism takes also part and is expected to be completed with a harmonised deposit guarantee system.
