Banking supervision glossary

A B C E F G H I J L M N O P Q R S T U

S

SEP
See
Supervisory Examination Programme (SEP)
SI
See
significant institution (SI)
significant institution (SI)
The criteria for determining whether banks are considered significant – and therefore under the ECB’s direct supervision – are set out in the SSM Regulation and the SSM Framework Regulation. To qualify as significant, banks must fulfil at least one of these criteria. Notwithstanding the fulfilment of the criteria, the SSM may declare an institution significant to ensure the consistent application of high-quality supervisory standards. Overall, the ECB oversees directly 119 significant banking groups.
significant supervised entity
A supervised entity that fulfils certain criteria regarding size, importance for the economy of the EU or any participating Member State or significance of its cross-border activities. All other supervised entities have to be considered less significant supervised entities. See also
Single Supervisory Mechanism (SSM)
supervised entity
Single Resolution Mechanism (SRM)
A mechanism proposed by the European Commission, which establishes uniform rules and a uniform procedure for the resolution of credit institutions established in the banking union. It is envisaged that it will be composed of a single resolution board and national resolution authorities in participating Member States, with ultimate decision-making power at the European level. For the purposes of resolution, the SRM will have at its disposal a single resolution fund. The SRM is a necessary complement to the Single Supervisory Mechanism in order to achieve a well-functioning banking union. See also
Single Supervisory Mechanism (SSM)
Single Supervisory Mechanism (SSM)
A mechanism composed of the ECB and national competent authorities in participating Member States for the exercise of the supervisory tasks conferred upon the ECB. The ECB is responsible for the effective and consistent functioning of this mechanism, which forms part of European banking union.
Single Supervisory Mechanism Regulation (SSMR)
The legal act creating a single supervisory mechanism for credit institutions in the euro area and, potentially, other EU Member States, as one of the main elements of Europe’s banking union. The SSM Regulation (EU) No 1024/2013 confers on the ECB specific tasks concerning policies relating to the prudential supervision of credit institutions and macroprudential policy.
SQA
Supervisory Quality Assurance
SRB
Single Resolution Board
SREP
See
Supervisory Review and Evaluation Process (SREP)
SRF
Single Resolution Fund
SRM
See
Single Resolution Mechanism (SRM)
SRMR
Single Resolution Mechanism Regulation
SSG
SSM Simplification Group
SSM
See
Single Supervisory Mechanism (SSM)
SSM Framework Regulation
The regulatory framework setting out the practical arrangements concerning the cooperation between the ECB and the national competent authorities within the Single Supervisory Mechanism: Regulation (EU) No 468/2014.
SSM Regulation
See
Single Supervisory Mechanism Regulation (SSMR)
SSMR
See
Single Supervisory Mechanism Regulation (SSMR)
supervised entity
Any of the following: (a) a credit institution established in a participating Member State; (b) a financial holding company established in a participating Member State; (c) a mixed financial holding company established in a participating Member State, provided that it fulfils the conditions laid down in point (21)(b); (d) a branch established in a participating Member State by a credit institution which is established in a non-participating Member State. See also
significant supervised entity
Single Supervisory Mechanism (SSM)
Supervisory Board
An internal body of the ECB that undertakes the planning and execution of the tasks conferred on the ECB relating to the prudential supervision of credit institutions. The Supervisory Board is composed of a Chair, a Vice-Chair, four representatives of the ECB and one representative of the national competent authority in each participating Member State of the Single Supervisory Mechanism. See also
Single Supervisory Mechanism (SSM)
Supervisory Examination Programme (SEP)
For each significant bank, the Joint Supervisory Team produces a Supervisory Examination Programme, which sets out the main supervisory tasks and activities for the following 12 months, their tentative schedules and objectives and the need for on-site inspections and internal model investigations.
Supervisory Review and Evaluation Process (SREP)
The process used to guide the supervisory review of significant and less significant credit institutions and to determine whether (on top of minimum requirements) possible additional requirements should be applied with respect to own funds, disclosure or liquidity, or whether any other supervisory measures should be applied.