Single banking supervision in Europe

The European Central Bank operates within the Single Supervisory Mechanism (SSM) to conduct direct supervision over the most important banks in the euro area. The European Central Bank is responsible for making sure that the capital and liquidity requirements are met, for issuing and revoking licences, and for approving acquisitions of major holdings in banks.

The decisions of the Single Supervisory Mechanism are drafted by the Supervisory Board of the European Central Bank, and the Chair of the Finantsinspektsioon Management Board sits on that board with voting rights. Eesti Pank is represented on the Supervisory Board by a Deputy Governor of Eesti Pank. The draft decisions of the Supervisory Board are approved by the Governing Council of the European Central Bank under a no-objection procedure.

Read more about single banking supervision on the SSM website and the Finantsinspektsioon website.