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Describe the Single Supervisory Mechanism or SSM Proposed by EU

question 22

Essay

Describe the single supervisory mechanism or SSM proposed by EU leaders in June of 2012.


Definitions:

Debt to Equity Ratio

The ratio showing the variance in financing methods between debt and equity for a company’s assets.

Dividend Payout Ratio

The fraction of net income a firm pays to its shareholders as dividends, expressed as a percentage of the company's total earnings.

Retention Ratio

A financial metric indicating the percentage of a company's net income that is not distributed as dividends but rather retained for reinvestment in the business.

Projected Sales Growth

An estimate of the rate at which a company's sales are expected to increase over a specific period.

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