The Specific Supervisory Tasks of the European Central Bank and Its Cooperation with National Competent Authorities

Abstract

This chapter analyses the specific supervisory tasks of the European Central Bank (ECB) and its cooperation with national competent authorities within the Single Supervisory Mechanism (SSM). The first section presents individual specific tasks as laid down in Article 4(1) of the SSM Regulation (including granting and withdrawing authorisations and ensuring compliance with micro-prudential regulations), and Article 5 thereof, which governs macro-prudential tasks and tools used by national authorities and the ECB. The second section is on the cooperation between the ECB and national competent authorities within the SSM, discussing, in particular, the general principles and obligations on the operation of this mechanism, the dichotomy between significant and less significant supervised entities, and the criteria and procedure for classifying supervised entities as significant, as well as the micro-prudential supervision of significant and less significant supervised entities and groups.