The European Central Bank (ECB) takes on new tasks as from November 2014 via the Single Supervisory Mechanism (SSM) and the specific tasks in relation to policies relating to the prudential supervision of credit institutions.
The SSM is a system of financial supervision which is composed of the ECB and the participating national competent authorities of the European Union, i.e. Member States of the euro area and any other Member State of the European Union not part of the euro area but which decided to participate in the SSM through “close cooperation” between its national competent authority and the ECB. The SSM is the 1st pillar of the Banking Union.
The main objectives of the SSM are to ensure the safety and soundness of the European banking system and to increase the financial integration and stability in Europe. The ECB is in charge of ensuring the efficiency and coherence of the SSM functioning by cooperating with the national competent authorities of the participating EU countries.
In Latvia 3 banks are being supervised by ECB – AS Swedbank, AS SEB banka and AS Citadele banka.