The ECB Single Supervisory Mechanism: Effects on Bank Performance and Capital Requirements
"Under the Single Supervisory Mechanism (SSM) introduced in 2014, the European Central Bank directly supervises significant euro area banks, which hold about 82% of total banking assets. We find that this important supervisory change has positive effects on the return on assets and the return on risk‑weighted assets of SSM banks without increasing the risk weights used to calculate regulatory capital."