BaFin

Topic SSM Mission statement of the SSM

Within the Single Supervisory Mechanism (SSM), composed of the European Central Bank and national competent authorities, the European Central Bank carries out its supervisory tasks. The European Central Bank is responsible for the effective and consistent functioning of the SSM, with a view to carrying out intrusive and effective banking supervision, contributing to the safety and soundness of the banking system and the stability of the financial system.

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In pursuing our objectives, we in the SSM attach utmost importance to credibility and accountability. In performing our tasks we are transparent while fully observing the applicable confidentiality requirements. We aim for effective communication with the citizens of Europe. We are committed to conducting our relations with European and national authorities in full accordance with the relevant law and with due regard to the principle of independence.

We develop a supervisory approach that meets the highest international standards. We will implement the EU policies on the prudential supervision of banks in a coherent and effective manner, based on a best practice framework for independent, forward-looking and risk-based supervision. We respect the principle of proportionality, the unity and integrity of the internal market and the public interest. We observe good governance and perform our tasks in a spirit of cooperation and teamwork.

The strategic intents of the Eurosystem and the Single Supervisory Mechanism

Acknowledged authority in monetary and financial matters

Building on its solid constitutional basis, its independence and its internal cohesion, the Eurosystem, the central banking system of the euro area, acts as the monetary authority of the euro area and as a leading financial authority, fully recognised inside and outside Europe. In pursuing its primary objective, the maintenance of price stability, the Eurosystem will undertake the necessary economic and monetary analyses and adopt and implement appropriate policies. It will also properly and effectively respond to monetary and financial developments.

Financial stability and European financial integration

In the Eurosystem and within the Single Supervisory Mechanism (SSM), we aim to safeguard financial stability and promote European financial integration in cooperation with the established institutional structures. To this end, we will contribute to policies providing for a sound European and global architecture for financial stability.

Accountability, independence, credibility; closeness to the citizens of Europe

In the Eurosystem and within the SSM, we attach utmost importance to credibility and accountability and we will be transparent while fully observing the applicable confidentiality requirements. We aim for effective communication with the citizens of Europe. We are committed to conducting relations with European and national authorities in full accordance with the Treaty provisions and with due regard to the principle of independence. To this end, we will keep abreast of the transformations and developments affecting money and financial markets and will be sensitive to the public interest and market needs.

Shared identity, clarity of roles and responsibilities and good governance

In the Eurosystem and the SSM, we aim to strengthen our shared identities within a framework of clearly defined roles and responsibilities for all participants. To this end, both the Eurosystem and the SSM will build on the potential and deep involvement of all their members, as well as on their commitment and willingness to work towards agreement. Furthermore, the Eurosystem and the SSM are committed to good governance and to applying effective and efficient organisational structures and working methods.

Best practice in banking supervision; equal treatment and level playing field

We in the SSM will measure our supervisory framework against the highest international standards. We will combine the best of the national approaches to build a best practice framework for banking supervision across the participating Member States, benefiting from our view across all institutions. The SSM will ensure compliance with the single rulebook and with applicable supervisory principles and practices, thereby ensuring a level playing field and the equal treatment of all supervised institutions.

Risk-based approach and proportionality; supervisory action

The SSM banking supervision will be agile and risk-based, involving judgement and forward-looking critical assessment. It will take into account both the probability of a failure of institutions or an institution and the impact that such a failure may have on financial stability. The supervisory practices of the SSM will follow the principle of proportionality, tailoring the intensity of supervision to the systemic importance and risk profile of the supervised banks. The SSM’s approach fosters efficient and timely supervisory action and a thorough monitoring of a credit institution’s response.

Organisational principles for the Eurosystem and the Single Supervisory Mechanism

For the Eurosystem, with due respect to the underlying principle of decentralisation:

Participation

All members of the Eurosystem and the Single Supervisory Mechanism (SSM) will contribute strategically and operationally to their goals.

Cooperation

All members of the Eurosystem and the SSM will perform all their functions in a spirit of cooperation and teamwork.

Transparency and accountability

All members of the Eurosystem and the SSM will act transparently and be fully responsible and accountable for the effectiveness of all their functions.

Distinguishing European and national activities

The European activities performed by national central banks and national competent authorities will be clearly identified and distinguished from those pertaining to national responsibilities.

Cohesion and unity

While respecting the legal status of their members, the Eurosystem will act as cohesive and unified entity and the SSM as a cohesive and coordinated entity. They will each work as a team and speak with one voice, aiming to be close to the citizens of Europe.

Exchange of resources

The members of the Eurosystem and the SSM will promote the exchange of personnel, know-how and experience.

Effectiveness and efficiency in decision-making

All decision-making and deliberative processes of both the Eurosystem and the SSM will pursue effectiveness and efficiency. Decision-making will focus on analysis and arguments as well as the expression of a variety of views.

Cost efficiency, measurement and methodology

The members of the Eurosystem and the SSM will manage all resources prudently and will promote effective and cost-efficient solutions in all their activities.

The Eurosystem and the SSM will develop control systems and performance indicators to measure the fulfilment of their functions and alignment with their objectives.

Comparable cost evaluation and cost-reporting methods will be further elaborated and utilised.

Exploit synergies and avoid duplications

Within both the Eurosystem and the SSM, while fully respecting the separation between monetary policy and supervisory tasks, potential synergies and economies of scale will be identified and exploited to the extent feasible.

Unnecessary duplication of work and resources and excessive and inefficient coordination will be avoided. To this end, organisational options that ensure effectiveness, efficiency and prompt action, taking advantage of the experience available through intensified use of existing resources will be energetically pursued.

The outsourcing of Eurosystem support functions and activities will be considered against the same criteria and will take security aspects into account.

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