The role of the European Central Bank in ensuring the financial stability of the EU
... Declaration included two specific legal obligations. Firstly, the creation of the Single Supervisory Mechanism (SSM) and the centralized supervision of the banking sector of the Member States of the eurozone with supervisory powers transferred to the European Central Bank in accordance with Article 127 (6) of the Treaty on the functioning of the EU. Secondly, the direct recapitalization of banks from the European Financial Stability Facility (EFSF), established under the European Stability Mechanism (ESM) based on ...
