Building Responsive Supervision Over Smaller Banks in Europe: An Insight from the Principal-Agent Perspective

Building Responsive Supervision Over Smaller Banks in Europe: An Insight from the Principal-Agent Perspective

Building Responsive Supervision Over Smaller Banks in Europe: An Insight from the Principal-Agent Perspective

The Single Supervisory Mechanism (SSM) is an administrative arrangement of national assistance to the ECB in exercising its exclusive supervisory competence. It sets two systems of assistance: ECB Direct Supervision (for large banks) and Indirect Supervision (for smaller and medium-sized banks) supervision.

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