Schulz on the Single Supervisory Mechanism

Commenting on the establishment of the Single Supervisory Mechanism (SSM) for Eurozone banks, the President of the European Parliament Martin Schulz i stated:

"The establishment of the Single Supervisory Mechanism, within the European Central Bank (ECB), is a crucial step towards building the Banking Union. As financial markets are cross-border, it is fundamental to unify the supervision of European banks. I welcome this major development which the European Parliament has been advocating for years.

This new European, effective and independent control authority greatly increases the resilience capacity of the banking system when faced with economic crises, thereby also bettering the protection of European citizens.

The ECB single supervisor will supervise the 130 largest banks of the 18 Eurozone countries but will also ultimately be responsible for the Eurozone supervision system. It will allow harmonized and improved banking practices, essential for enhanced stability and more investment in the economy.

Separating the supervision of the largest banking groups from the Member States where their headquarters are based will contribute to a more independent and fair surveillance which will favour the common good.

This authority, headed by Danièle Nouy, will work closely with national supervisors and also the European Banking Authority.

Other steps are still needed to complete the Banking Union, notably the implementation of the Single Resolution Mechanism in 2016. The recast of the directive on Deposit Guarantee Schemes is another decisive step."