European banking supervision
As Germany’s national competent authority (NCA), BaFin forms an integral part of the new European banking supervision system. The Single Supervisory Mechanism (SSM), launched on 4 November 2014, is supposed to ensure the resilience and solidity of the European banking system and to enhance financial integration and stability throughout Europe.
Single Supervisory Mechanism (SSM)
The Single Supervisory Mechanism (SSM) places significant banks in participating countries under the direct supervision of the European Central Bank (ECB). The SSM comprises the ECB and the national supervisory authorities of the euro countries. Non-euro area member states may participate in the SSM on a voluntary basis.
The objective of the “Single Rulebook” is to harmonise European banking supervision law. It comprises various legal acts, which are binding for all financial institutions.
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