EU leaders’ decision to move towards a Banking Union has transformed the supervisory landscape in Europe. Under the Single Supervisory Mechanism (SSM), the Eurozone’s significant banks (and those from Member States that possibly opt-in) will soon be supervised directly by the European Central Bank. National authorities will still continue to supervise all other (less significant) banks in the Eurozone but under the control and guidance of the ECB. The SSM will bring about greater harmonisation of banking supervisory practices and a more integrated supervision over some 6000 banks in Europe, which is very much supported by the European Banking Federation.
The EBF intends to play its role in this new environment and to provide SSM banks with a networking and exchange of information platform vis-à-vis the ECB. For its part, the ECB has also confirmed – during recent meetings with the EBF – its interest to reach out, via the EBF, to the SSM banks on Single Supervisory related issues.
In order to adjust to this new reality, the EBF has decided to set up a new structure (inside the Federation) in the form of an SSM Steering Group which will be composed of high level representatives of the most significant SSM banks, as well as representatives of relevant national banking associations (NBAs). A call for candidates has recently been sent through the national banking associations. The SSM Steering Group will act as a dialogue partner with the ECB and is expected meet for the first time in September. A larger SSM forum (open to a larger sample of banks and NBAs) will also be organised to meet twice a year with the ECB and European Banking Authority to discuss the state of advancement of the Single Rulebook for all of Europe’s banks.