SSM explained in 3 minutes
The Single Supervisory Mechanism (SSM) is a new system of banking supervision for Europe. It comprises the ECB and the national supervisory authorities of the participating countries.
Its main aims are to:
- ensure the safety and soundness of the European banking system
- increase financial integration and stability
- ensure consistent supervision
The SSM is one of the two pillars of the EU banking union, along with the Single Resolution Mechanism.