Single Supervisory Mechanism (SSM) has been saved
Single Supervisory Mechanism (SSM)
While smaller (‘less significant’) banks will continue to be day-to-day supervised by national authorities, the Single Supervisory Mechanism (SSM) promises a more consistent supervision for all SSM banks. In a joint opinion piece, Danièle Nouy, SSM Chair, and Sabine Lautenschläger, SSM Vice-Chair, once again emphasized the role of harmonized standards for both regulation and supervision; and reminded their readers that “as a true European supervisor”, the SSM’s “approach will be to implement best practices for independent, intrusive and forward-looking supervision that will ensure a level-playing field for banks’ operations”.
They also confirmed that the SSM was to take on board lessons learned during the Comprehensive Assessment, in particular in addressing the inconsistencies that it revealed; one of the SSM priorities will be the review of models banks use for calculating their risk-weighted assets.