Close cooperation within the Single Supervisory Mechanism

EU Member States whose currency is not the euro can participate in the Single Supervisory Mechanism (SSM) by requesting that close cooperation be established between the European Central Bank (ECB) and their national competent authorities (NCAs).

The process towards close cooperation involves two steps.

1.
The requesting country adopts national legislation allowing the ECB to carry out its supervisory role.
2.
The ECB then conducts a comprehensive assessment of that country’s credit institutions to identify any underlying issue/shortfall and to ensure that the necessary corrective actions are implemented.

Once the assessment is complete and positive, the ECB adopts a decision as to how supervisory tasks will be carried out and when the close cooperation will start.

Within the SSM close cooperation framework, the participating Member State becomes a member of the system of European banking supervision and its NCA is in a position comparable to that of all other NCAs of Member States participating in the SSM. Procedural adjustments are in place to address the differences between the euro-area Member States and those whose currency is not the euro.