Being better informed: November 2014

4 November marked a momentous shift in EU banking supervision, as the ECB launched the SSM and took over prudential supervision of more than 6,000 Eurozone banks. Tearing down supervisory barriers between 18 countries represents an important milestone in uniting Europe’s financial markets. It should facilitate greater cross-border banking in the Eurozone and open up more funding options for businesses and individuals. The ECB and national supervisors from the Eurozone Member States will face many challenges implementing the SSM. The ECB will need to ensure it has adequate, appropriately skilled, supervisory resource to carry out its direct supervision of the largest Eurozone banks. Along with national supervisors and banks, it will need to work out the mechanics of supervising individual firms over the coming months while ensuring it brings a consistent supervisory approach across the industry.

 


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