Financial market supervision
The objective of the integrated financial market supervision (from 1 January 2006) was to contribute to the stability of the financial market as a whole, as well as to the secure and sound operation of the financial market in the interest of maintaining credibility of the financial market, protecting clients, and respecting the competition rules.
- on-site and off-site supervision over supervised entities of the financial market in the area of banking, capital market, insurance and pension saving,
- acting and deciding on supervision issues (for example, acting and deciding on applications for grant of permissions, consents or prior consents in the financial market area, as well as acting and deciding on sanctions and corrective measures),
- the actual conduct of the on-site and off-site supervision,
- the preparation of draft regulations (secondary legislation) implementing the financial market laws. The National Bank of Slovakia as part of Bank Union
In June 2012 the European Council concluded that in order to break the negative feedback loop between banking systems and countries that led to the deepening of the economic crisis in the euro area, it is necessary to prepare legislation to preserve the unity and integrity of the single market in financial services - so-called Banking Union built on three pillars:
- the Single Supervisory Mechanism,
- the Single Crisis Resolution Mechanism
- deposit protection system with a European dimension.
The Single Supervisory Mechanism (entered into operation on 4 November 2014) is a new system of financial supervision that officially. It comprises the European Central Bank and the national competent authorities (NCAs) of mainly euro area countries, including Slovakia. The basis of the SSM is cooperation between the ECB and NCAs, with Národná banka Slovenska operating as the NCA in Slovakia.
For the purposes of the Single Supervisory Mechanism, banks (credit institutions) are categorised into
- "significant" - with the ECB direct supervision and
- "less significant"- under the supervision of NCAs