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08 May 2013

BFM: German cabinet approves SSM bill


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The German cabinet approved a Single Supervisory Mechanism bill by Finance Minister Schäuble on Wednesday, paving the way for the partial transfer of banking supervision in the eurozone to the ECB.


Translated from the German

The direct supervision by the ECB will focus on "significant" banks from the participating Member States. Criteria are the size of a credit institution, its importance for the economy of the EU or a participating Member State, or the scope of its cross-border activity. Banks or corporations with total assets of over €30 billion or more than 20 per cent of the GDP of a Member State are generally regarded as "significant". Regardless of these criteria, the ECB will oversee at least the three major credit institutions in each participating Member State directly. In addition, the ECB will directly supervise those credit institutions that apply for or receive direct support from the European Stability Mechanism (ESM) and the European Financial Stability Facility (EFSF).

The ECB will fully assume its supervisory tasks one year after the entry into force of the regulation. However, if it is not able at this time to assume the supervisory duties, it can decide to postpone the date. After entry into force of the SSM, the ECB can make arrangements for the takeover of its operational supervisory tasks, but cannot make regulatory decisions. It will be able to obtain specific information and perform balance assessments.

Press release (German)



© Bundesfinanzministerium


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