Having joined the euro area in 2015, Lithuania also joined the banking union’s Single Supervisory Mechanism (SSM). Consequently, the European Central Bank (ECB) became responsible for direct supervision of the three largest banks registered in Lithuania. Their supervision is performed jointly with the Bank of Lithuania.
The Single Supervisory Mechanism is a system of banking supervision in Europe comprised of the ECB and the national supervisory authorities of the participating countries.
The main aims of the SSM are to:
- ensure the safety and soundness of the European banking system;
- increase financial integration and stability;
- ensure consistent supervision.
EU legal acts related to the Single Supervisory Mechanism
- Council Regulation (EU) No 1024/2013 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions (1011.2 KB )
- Regulation (EU) No 468/2014 of the European Central Bank establishing the framework for cooperation within the Single Supervisory Mechanism between the European Central Bank and national competent authorities and with national designated authorities (SSM Framework Regulation) (1.1 MB )
- Rules of Procedure of the Supervisory Board of the European Central Bank (331.9 KB )
- Decision of the European Central Bank adopting the Rules of Procedure of the European Central Bank (732 KB )
- Interinstitutional Agreement between the European Parliament and the European Central Bank on the practical modalities of the exercise of democratic accountability and oversight over the exercise of the tasks conferred on the ECB within the framework of the Single Supervisory Mechanism (739.2 KB )
- Memorandum of Understanding between the Council of the European Union and the European Central Bank (40.8 KB )
- Decision of the European Central Bank concerning the establishment of an Administrative Board of Review and its Operating Rules (430.6 KB )
- Regulation (EU) No 673/2014 of the European Central Bank concerning the establishment of a Mediation Panel and its Rules of Procedure (414.7 KB )
- Decision of the European Central Bank on the close cooperation with the national competent authorities of participating Member States whose currency is not the euro (428.4 KB )
- Decision of the European Central Bank on the appointment of representatives of the European Central Bank to the Supervisory Board (400.1 KB )
- Regulation (EU) 2016/445 of the European Central Bank on the exercise of options and discretions available in Union law (ECB/2016/4) (380.7 KB )