The identification of significant banks, which will be subject to direct supervision by the ECB, will take place according to criteria set out in the SSM Council Regulation and further developed in the SSM Framework Regulation. The result of this process is due to be announced in September.
The SSM Framework Regulation reflects the comments received from interested parties during a public consultation. These responses along with the Feedback Statement and the SSM Framework Regulation are published on the website of the ECB.
The SSM Regulation bestows supervisory powers over "significant" eurozone banks on the ECB. The assessment of whether or not a bank is "significant" will be based on:
Size – the presumption being that any bank which fulfils any of the following criteria will be regarded as significant:
the total value of its assets exceeds €30 billion; or
its total assets represent over 20 per cent of the GDP of the relevant participating Member State (unless the value of those assets is below €5 billion); or
both the bank’s NCA and the ECB confirm that the bank is to be regarded as "significant";
Importance for the economy of the EU or any Member State participating in the SSM; and
Significance of cross-border activities.
Any bank which has received public financial assistance shall be regarded as "significant" as are the three most significant banks in each of the participating Member States. The assessment as to whether or not a bank is "significant" should not be conducted more often than annually.
In its press release, the ECB confirmed that the first list of "significant" banks will be published in September 2014.
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