Single Supervisory Mechanism (SSM)

The Single Supervisory Mechanism (SSM) is a framework established by the European Union to oversee significant banks within the Eurozone. It aims to ensure that these banks are stable, following the same rules and standards. The European Central Bank (ECB) leads the SSM, working with national regulators to monitor banks' health, risk management, and financial practices. By doing so, the SSM seeks to prevent financial crises, protect consumers, and maintain trust in the banking system across Europe. Essentially, it provides a unified approach to banking supervision, promoting safety and soundness in the financial sector.