Single Supervisory Mechanism
European Union (EU) bank supervision.
In the Euro zone, the European Central Bank (ECB) regulates the financial stability of banks through its Single Supervisory Mechanism (SSM).
The ECB has final supervisory authority, with Euro zone member states’ national supervisory authorities providing a supporting role.
The ECB directly supervises the 'most significant' banks within each Euro zone member state, with the national supervisory authority directly supervising the other (less significant) banks within its jurisdiction.