only in european integration, but also in day - to - day supervisory work. the ecb – one of the world ’ s largest supervisors the ecb will take on the direct supervision of around 120 credit institutions and more than 80 % of the aggregated balance sheet for the euro area banking sector. in absolute figures, this means a total of more than €21 trillion as per 30 june 2014. in addition, the ecb will be indirectly supervising the less significant institutions, of which there are just over 3, 500. here, we will shape supervision by setting binding supervisory standards. this will make the ecb one of the world ’ s largest supervisors. i anticipate that, over the next few years, the geographical area under our remit will expand and that the number of directly and indirectly supervised banks will continue to grow. on the one hand, further countries will join the euro area. on the other hand, the regime of “ close cooperation ” gives eu member bis central bankers ’ speeches states who do not yet have the euro as their currency a chance to participate in the banking union. when this option was introduced into the ssm regulation, sceptics thought it unlikely that a member state would exchange its exclusive supervisory competences for membership of the supervisory mechanism. developments over the last few months have shown, however, that the ecb has significantly more to offer than just a seat on the supervisory board. the ecb enjoys trust and credibility – valuable assets for both monetary policy and banking supervision alike. credibility, however, has to be earned anew each day. in this respect, the ecb ’ s monetary policy can already look back on a solid track record. in the area of banking supervision, we stand at the very beginning. but that does not mean that we will only start to find our way on 4 november. for many months now, my colleagues and i have been working to determine, among other things, the focus of our supervisory approach, both conceptually and thematically. the critical issues are : how can the ecb reap the intrinsic benefits of supervising 19 national banking systems? and how can we ensure that institution - specific insights of the national supervisors are best maintained and incorporated? allow me to give you a few examples to explain the conclusions we have reached. i will focus on the specific features of the ssm. so do not be surprised if i do not mention things that are self - evident, such as a preventative, forward - looking and

sabine lautenschlager : countdown to november – european supervision ready for lift - off speech by ms sabine lautenschlager, member of the executive board of the european central bank, at the handelsblatt konferenz “ banken im umbruch ”, frankfurt am main, 3 september 2014. * * * summary european banking supervision will draw on the long - standing experience of 18 – soon 19 – member states and incorporate it into a new european supervisory culture, said sabine lautenschlager, member of the executive board of the european central bank ( ecb ) in a speech at the “ banken im umbruch ” conference in frankfurt am main. a significant advantage of the new single supervisory mechanism ( ssm ) is the possibility to make cross - country comparisons. “ i am not just thinking of the assessment of specific portfolios here, but also of the early identification of risks, which only become visible, or are at least easier to identify, in horizontal analysis ”, she said. the asset quality review has already given us a deeper insight into the banks ’ procedures, thereby making it possible for us to check “ which differences between banks are justified and to ascertain where we need to probe critically ”. ms lautenschlager stressed that, although decision - making in the new european banking supervision will be organised centrally, the ssm can build on regional knowledge and experience. “ as national supervisory authorities participate in the supervisory process, the ecb remains close to regional market and banking structures ”, she said. also in terms of staffing, the ssm will bring together people from different supervisory cultures. the heads of joint supervisory teams will come from a country other than that in which the institution it is supervising is established. “ in concrete terms : the head supervisor for deutsche bank will be a french lady ; bnp paribas will be supervised by an italian man. ” * * * ladies and gentlemen, in precisely two months ’ time, we will usher in a new era in the euro area. with the establishment of the single supervisory mechanism ( ssm ) on 4 november 2014, the european central bank ( ecb ) will assume key competencies in the field of banking supervision. however, unlike the introduction of the euro banknotes and coins in 2002, this step towards further integration will not entail a major symbolic change that is tangible for all citizens. nevertheless, the start of the ssm means progress, not