Clifford Chance
Banking Union and the role of the European Central Bank
29 January 2015
On 4 November 2014 the European Central Bank (ECB) assumed its role as a supra-national bank supervisor for banks established in the eurozone and other participating Member States. The ECB is given this role under the Single Supervisory Mechanism (SSM) which forms the first pillar of a “Banking Union” for the eurozone. The second pillar is the Single Resolution Mechanism (SRM).
This note provides an overview of the various legislative components of the SSM and the SRM. It also explains the division of responsibilities between national supervisors and the ECB in relation to standard supervisory and resolution related tasks for EU banks.
