In November 2014 a new system of banking supervision for Europe was established - the Single Supervisory Mechanism (SSM). SSM comprises the ECB and the national supervisory authorities of the participating countries.
Its main aims are to:
- ensure the safety and soundness of the European banking system
- increase financial integration and stability
- ensure consistent supervision
The SSM is one of the pillars of the EU banking union.
The ECB directly supervises the 129 significant banks of the participating countries or almost 82% of banking assets in the euro area - also 3 banks from Slovenia (NLB, d.d., NKBM, d.d. and Abanka d.d.). Ongoing supervision of the significant banks is carried out by Joint Supervisory Teams (JSTs). Each significant bank has a dedicated JST, comprising staff of the ECB and the national supervisors.
Banks that are not considered significant are known as “less significant” institutions. They continue to be supervised by their national supervisors, in close cooperation with the ECB.
More about Bank of Slovenia's supervision activities in Annual report 2015 - 3.6 Banking supervision.