The Single Supervisory Mechanism (SSM) is a system established by the European Central Bank (ECB) to oversee the banking sector in the Eurozone. It aims to ensure the safety and soundness of banks, promoting financial stability across member states. The SSM directly supervises significant banks, while less significant ones are monitored by national authorities under the ECB's guidance. Implemented in 2014, the SSM is part of the broader European Banking Union, which seeks to create a more integrated and resilient banking system in Europe. By centralizing supervision, the SSM enhances transparency and accountability, helping to prevent future financial crises.