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The 120 significant credit institutions represent almost 85% of total banking assets in the euro area. Almost all of them have been designated as significant due to their size or due to total assets representing more than 20% of GDP. Only three groups are systemically important due to significant cross-border assets:
The Single Supervisory Mechanism (SSM) presents a form of myopia as a regime aimed at prudential supervision. Since the United Kingdom did not opt-in, important financial institutions operating in London will be outside ECB’s field of vision:
More importantly, these institutions were shortlisted by the FSB as Global Systemically Important Banks (G-SIBs), using a methodology developed by the BCBS.
ECB will need to prove shortly that it can assume the role for which it was created: translate extensive supervisory powers on paper to truly effective oversight on the field. Indeed, a Member of the Executive Board of the ECB recently suggested that the next few months will not be at all relaxing.
List of significant credit institutions