On 4 November 2014, the Single Supervisory Mechanism (the "SSM") became fully operative. The SSM has been established by the Council Regulation No 1024/2013 of 15 October 2013 (the ''SSM Regulation'') conferring specific tasks on the European Central Bank (the "ECB") concerning policies relating to the prudential supervision of credit institutions, itself complemented by the Regulation (EU) n° 468/2014 of the European Central Bank of 16 April 2014 establishing the framework for cooperation within the Single Supervisory Mechanism between the European Central Bank and national competent authorities and with national designated authorities (the "SSM Framework Regulation").
Pursuant to the SSM, the European Central Bank becomes the central prudential supervisor of financial institutions in the Eurozone (including approximately 6000 banks) with a possibility to extend the scope of its activity so as to cover EU Member-States outside the Eurozone which choose to join the SSM. It represents one of two pillars of the wider European banking union project, together with the Single Resolution Mechanism (the "SRM").
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