The Regulation on the Single Supervisory Mechanism (SSM) emphasises the need to preserve independence between the supervisory tasks of the European Central Bank (ECB) and its monetary policy responsibilities. To ensure this, a Supervisory Board has been created which plans and executes the supervisory tasks of the ECB, carries out preparatory work and proposes draft decisions for the final approval of the ECB Governing Council. This Supervisory Board consists of a Chair, a Vice-Chair, a representative of each national authority and four ECB representatives.
As the decision-making body of the ECB, the Governing Council has ultimate responsibility for adopting supervisory measures through the “non-objection” procedure. This procedure means that this body cannot modify the draft decisions submitted by the Supervisory Board, but it can send them back for reconsideration.
This body settles disagreements between the Supervisory Board and the Governing Council, if requested by a national authority. It comprises one representative of each Member State, chosen from among the members of the Governing Council and the Supervisory Board.
Administrative Board of Review
Persons or legal entities affected by a decision approved by the Governing Council may request a review of the decision by the Administrative Board of Review. In this case, the Board will carry out an internal administrative review of the ECB supervisory decisions and send non-binding opinions on them to the Supervisory Board, which must then draw up a new draft decision. It consists of five independent members.
Steering Committee of the Supervisory Board
The Steering Committee consists of eight members of the Supervisory Board (Chair, Vice-Chair, one ECB representative and five representatives of the national competent authorities (NCAs) with a one-year mandate). It supports the activities of the Supervisory Board and prepare the Board’s meetings.