The strategic intents of the Eurosystem and the Single Supervisory Mechanism
Acknowledged authority in monetary and financial matters
Building on its solid constitutional basis, its independence and its internal cohesion, the Eurosystem, the central banking system of the euro area, acts as the monetary authority of the euro area and as a leading financial authority, fully recognised inside and outside Europe. In pursuing its primary objective, the maintenance of price stability, the Eurosystem will undertake the necessary economic and monetary analyses and adopt and implement appropriate policies. It will also properly and effectively respond to monetary and financial developments.
Financial stability and European financial integration
In the Eurosystem and within the Single Supervisory Mechanism (SSM), we aim to safeguard financial stability and promote European financial integration in cooperation with the established institutional structures. To this end, we will contribute to policies providing for a sound European and global architecture for financial stability.
Accountability, independence, credibility; closeness to the citizens of Europe
In the Eurosystem and within the SSM, we attach utmost importance to credibility and accountability and we will be transparent while fully observing the applicable confidentiality requirements. We aim for effective communication with the citizens of Europe. We are committed to conducting relations with European and national authorities in full accordance with the Treaty provisions and with due regard to the principle of independence. To this end, we will keep abreast of the transformations and developments affecting money and financial markets and will be sensitive to the public interest and market needs.
Shared identity, clarity of roles and responsibilities and good governance
In the Eurosystem and the SSM, we aim to strengthen our shared identities within a framework of clearly defined roles and responsibilities for all participants. To this end, both the Eurosystem and the SSM will build on the potential and deep involvement of all their members, as well as on their commitment and willingness to work towards agreement. Furthermore, the Eurosystem and the SSM are committed to good governance and to applying effective and efficient organisational structures and working methods.
Best practice in banking supervision; equal treatment and level playing field
We in the SSM will measure our supervisory framework against the highest international standards. We will combine the best of the national approaches to build a best practice framework for banking supervision across the participating Member States, benefiting from our view across all institutions. The SSM will ensure compliance with the single rulebook and with applicable supervisory principles and practices, thereby ensuring a level playing field and the equal treatment of all supervised institutions.
Risk-based approach and proportionality; supervisory action
The SSM banking supervision will be agile and risk-based, involving judgement and forward-looking critical assessment. It will take into account both the probability of a failure of institutions or an institution and the impact that such a failure may have on financial stability. The supervisory practices of the SSM will follow the principle of proportionality, tailoring the intensity of supervision to the systemic importance and risk profile of the supervised banks. The SSM’s approach fosters efficient and timely supervisory action and a thorough monitoring of a credit institution’s response.