The Single Supervisory Mechanism (SSM) refers to the system of banking supervision in Europe. It comprises the European Central Bank (ECB) and the national supervisory authorities of the participating countries. Latvia, as a member of the euro area, is also a member of the SSM.
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 European Union countries.
The ECB directly supervises the 110 significant banks of the participating countries. These banks hold almost 82% of banking assets in these countries. The decision on whether a bank is deemed significant is based on a number of criteria.
In Latvia 3 banks are being supervised by ECB – AS Swedbank, AS SEB banka and AS Citadele banka.