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This paper analyses the changes in equity ratio of European banks in the run up to the implementation of the Single Supervisory Mechanism. We compare the effect that the stringency of the national supervisors had on the equity ratio during the process of transmitting the banks to supervision in the SSM. We also compare banks that are only indirectly supervised by the ECB in the SSM with the banks that are directly supervised by the ECB. We came to the conclusion that banks originating from Member States that were previously less stringent for their local banks had the largest increase in equity ratio. Overall, we notice that the equity ratio of the banks in the Euro Area did increase during the implementation of the SSM