• Banking supervision
• Difference-in-difference estimation
• Single Supervisory Mechanism

This thesis aims at giving general overview of the impact of the SSM on the European banking market at the micro level, using a wide range of balance sheet variables to get a comprehensive view of the health of European banks. By using a novel approach proposed by Imai et al. (2023) and employing an unbalanced panel dataset with annual data from 2011 to 2023 I find pos- itive results protracted over time and consistent with the explicit objectives of the European supervisor, which can therefore be interpreted as proof of the effectiveness of the SSM. Thus, ten years after its introduction, the SSM seems to be producing positive results both directly, through its supervisory activities, and indirectly, through increased transparency and credibility of the supervised institutions.