National supervisory authorities, also known as national competent authorities (NCAs), work together closely with the ECB. They prepare and implement the ECB’s adopted decisions. They also directly supervise LESS SIGNIFICANT banks in the participating countries, around 3,500 in the euro area alone, which are not directly supervised by the ECB. HOWEVER, the ECB can decide at any time to take over the direct supervision of any one of these banks in order to ensure that HIGH supervisory standards are applied consistently. 

The NCAs are also responsible for consumer protection and for combatting money laundering, which are OUTSIDE the scope of the ECB’s supervisory responsibilities.

National supervisory authorities, also known as national competent authorities (NCAs), work together closely with the ECB. They prepare and implement the ECB’s adopted decisions. They also directly supervise less significant banks in the participating countries, around 3,500 in the euro area alone, which are not directly supervised by the ECB. However, the ECB can decide at any time to take over the direct supervision of any one of these banks in order to ensure that high supervisory standards are applied consistently. 

The NCAs are also responsible for consumer protection and for combatting money laundering, which are outside the scope of the ECB’s supervisory responsibilities.