Council approves single supervisory mechanism for banking
EU News 437/2013
Luxembourg, 15 October 2013
COUNCIL OF THE EUROPEAN UNION
The Council today1 adopted regulations creating a single supervisory mechanism for the oversight of banks and other credit institutions, thus establishing one of the main elements of Europe's banking union.
The single supervisory mechanism (SSM) will be composed of the European Central Bank (ECB) and the supervisory authorities of the member states. It will cover the euro area as well as non-eurozone countries that choose to participate. The ECB will have direct oversight of eurozone banks, although in a differentiated manner and in close cooperation with national supervisory authorities. It will be responsible for the overall functioning of the SSM.
The ECB will assume its supervisory tasks twelve months after entry into force of the legislation2, subject to operational arrangements.
1 At a meeting of the Economic and Financial Affairs Council, without discussion.
2 The ECB regulation will enter into force on the fifth day following its publication in the Official Journal; the EBA regulation will enter into force the day after publication.
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