ЕВРОПЕЙСКИЯТ НАДЗОРЕН МЕХАНИЗЪМ - ОБЩА ХАРАКТЕРИСТИКА
EUROPEAN SUPERVISORY MECHANISM - GENERAL CHARACTERISTICS

Summary/Abstract: The Single Supervisory Mechanism (SSM) is one of the three main pillars of the European Banking Union (EBA), alongside the Single Resolution Mechanism (SRM) and the Common Deposit Guarantee Scheme. Its purpose is to centralize in the European Central Bank (ECB) the prudential supervision of credit institutions. The basis of the SSM is the transfer at European level of specific, key supervisory tasks to the ECB, which is empowered to exercise prudential supervision in the banking sector in all Member States of the Eurozone and in other Member States willing to participate. The SRM is expected to create a centralized instrument for implementing the new rules on the recovery and restructuring of insolvent banks and has been fully operational on 1 January 2016. The Common Deposit Guarantee Scheme provides for uniform protection for depositors in the EU.The legal framework of the SSM is developed at several levels: 1) the Treaty on the Functioning of the European Union (TFEU), 2) Regulation (EC) No. Council Regulation (EU) No 1024/2013 of 15 October 2013 entrusting the European Central Bank with specific tasks relating to the prudential supervision of credit institutions (the SSM Regulation), 3) Regulation (EC) No 468/2014 of the European Central Bank of 16 April 2014 establishing the framework for cooperation in the single supervisory mechanism between the European Central Bank and the national competent authorities and with the bodies designated at national level (the SSM Framework Regulation), and 4) the regulatory package for the banking sector, 5) applicable EU law and 6) the ECB's statutes (statutes, rules for the organization and operation of individual ECB bodies). The ECB is a supranational external banking supervision authority with a specialized competence limited to supervisory powers and administrative sanctioning. The ECB carries out controls on compliance with regulatory requirements in order to protect the banking system, protect depositors, prudent operation and promotion and enforcement of market discipline, ensuring an efficient and competitive banking system and adequate supply of banking services,Although within the SSM the competences of national authorities are not limited to less important credit institutions, the ECB has the ultimate and decisive powers to ensure the smooth functioning of the SSM, which again highlights the unity of the Single supervisory mechanism.

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