On 12 September 2013, the European Parliament published a press release announcing the adoption of a package of legislative acts to set up a Single Supervisory Mechanism (SSM) for the Eurozone. The SSM legislation was adopted with very large majorities and will bring the EU’s largest banks under the direct oversight of the European Central Bank (ECB) from September 2014.
The SSM legislation consists of a proposed regulation conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions and a proposed regulation amending Regulation 1093/2010 (see this blog post for more details). The European Parliament has also published a document containing the provisional texts adopted which can be found on pages 105 and 50 respectively.
The Regulations will come into force following approval by the EU Council and publication in the Official Journal of the EU. The ECB will assume its supervisory role 12 months later.