Single Supervisory Mechanism
As part of the implementation of the European banking union and the establishment of a Single Supervisory Mechanism (SSM), the ECB has become responsible for the supervision of all euro area banks since the beginning of November 2014. This supervision is carried out directly by the ECB for the most important banks in the euro area and is entrusted to the national competent authorities for the less important banks. Ultimately, the responsibility for the supervision of all euro area banks lies with the ECB. EU Member States that do not belong to the euro area are free to voluntarily join the SSM. Within the ECB, a Supervisory Board, composed of representatives from the ECB, national central banks and national supervisory authorities, is in charge of the preparation of the decisions regarding supervision. The final decisions are taken by the Governing Council of the ECB. The BCL is represented at the Supervisory Board together with the Commission de Surveillance du Secteur Financier (CSSF).