ECB became the supervision body of EU

05.11.2014

Since the 4^th of November, 2014 European Central Bank became the supervision body for European banks.

This role was gained by ECB as a result of the year of preparation phase, which included deep examination of the biggest banks in Eurozone.

Single Supervisory Mechanism (SSM) is a new system of banking supervision, which is based on the cooperation between ECB and national banks of the member countries.
ECB will be directly supervising 120 main banking groups which represent 82% of the banking sector in Eurozone.

Special website was created in order to highlight the new role of ECB 0-www.bankingsupervision.europa.eu. You may find all the relevant and up-to-date information with regards to the supervisory activities of ECB.

Source: https://www.ecb.europa.eu/press/pr/date/2014/html/pr141104.en.html

Expert’s opinion

ECB is not replacing the central banks of EU member states yet. Nonetheless, it is getting close to it.

What will change for the ordinary clients of the EU banks?

Common standards, the implementation of which will be supervised by ECB, will lead to harmonization and possibly the tightening of the due diligence procedures of the clients, which open accounts for non-residential companies. I.e.: for the opening of the bank account in the Baltic countries for BVI company you will need to submit more and more documents.

On the other hand, the common monetary and credit policy will allow to control and in time to burst financial bubbles and pyramids. Therefore, on the global scale the reliability of the banks will increase, which is absolutely good news.

Yaroslav Lomakin ( Managing Partner, Honest & Bright Company)