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Mr Hakkarainen opened by saying: "In the euro area, the connection between the new supervisory mechanism and central banking is evident from the institutional set-up. The Single Supervisory Mechanism (SSM) has been attached to the ECB, which will in November 2014 assume new supervisory powers. This solution - as opposed to establishing a separate European supervisory entity - follows largely the need to establish the SSM quickly within the limits of the current EU treaties.
We should not forget…that in many ways the ECB responsible for bank supervision is not the same ECB that is responsible for monetary policy. The decision-making of the two functions have been purposefully kept separate and on supervisory matters the new Supervisory Board will have a predominant role, even if the Council must still approve these decisions afterwards.
The two functions will also have separate staff, restrictions on exchange of confidential information and are even located in separate buildings in different sides of Frankfurt."
He discussed further benefits of the new system. In answering the question of what the banking union mean to the euro area and the European system of central banks, he answered: "I would expect the primary benefits to relate to its impact on broader financial stability and the degree of European financial integration."