Cecabank Annual Report 2014

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41
BANKING UNION
It comprises three main pillars:
The Single Supervisory
Mechanism (SSM);
The Single Resolution
Mechanism (SRM);
A Europe-wide deposit
guarantee fund.
Supported by the “single rulebook”
which aims to standardise EU rules
on financial matters.
Banking Union is a decisive step
towards building a single European market
BANKING UNION - PILLARS
Common rules
EBA - Single Rulebook
SSM
Direct supervision of
significant institutions
SRM
Single Supervisory
Mechanism
DGF
Deposit
Guarantee Fund
Indirectly supervised
by the ECB through the SSM
The Single Supervisory Mechanism
Based on the ECB’s assuming
supervisory competences over all
euro area credit institutions. Came
into operation on 4 November 2014.
The SSM operates on two levels:
Direct supervision
of significant institutions,
namely those meeting one or
more of the following criteria
(120 institutions):
Total consolidated assets exceed
30 billion euros
The ratio of the institution’s assets
to GDP of the country in which it is
based exceeds
20% of national GDP
unless its total consolidated assets
are less than 5 billion euros.
It is one of the
3 largest institutions
in the Member State
It has subsidiaries in more than one
participating country, whose assets
or cross-border liabilities represent
more than
20% of total assets or liabilities
It has received or applied for direct
Financial support
from the European Financial
Stability Facility or the European
Stability Mechanism.
Indirect supervision
other financial institutions (over
3,000), supported by the work of na-
tional supervisors, but subject to the
application of standardised policies
and procedures, such that the ECB
maintains ultimate responsibility,
and the option of assuming direct
supervision of specific institutions if it
sees fit.
More than
3,000 financial institutions
SSM
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