The European System of Financial Supervision (ESFS) is the framework for financial supervision in the
European Union
The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been des ...
that has been in operation since 2011. The system consists of the ''European Supervisory Authorities'' (ESAs), the
European Systemic Risk Board
The European Systemic Risk Board () is a group established on 16 December 2010 in response to the ongoing financial crisis. It is tasked with the macro-prudential oversight of the financial system within the European Union in order to contrib ...
, the Joint Committee of the European Supervisory Authorities, and the national supervisory authorities of EU member states. It was proposed by the
European Commission
The European Commission (EC) is the executive of the European Union (EU). It operates as a cabinet government, with 27 members of the Commission (informally known as "Commissioners") headed by a President. It includes an administrative body o ...
in 2009 in response to the
financial crisis of 2007–08
Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of fina ...
.
There are three European Supervisory Authorities (ESAs). They are responsible for
microprudential oversight at the European Union level:
* The
European Banking Authority
The European Banking Authority (EBA) is a regulatory agency of the European Union headquartered in Paris. Its activities include conducting stress tests on European banks to increase transparency in the European financial system and identifying ...
(EBA) in Paris;
* The
European Securities and Markets Authority
The European Securities and Markets Authority (ESMA) is an independent European Union Authority located in Paris.
ESMA replaced the Committee of European Securities Regulators (CESR) on 1 January 2011. It is one of the three new European Supe ...
(ESMA) in Paris; and
* The
European Insurance and Occupational Pensions Authority
The European Insurance and Occupational Pensions Authority (EIOPA) is a European Union financial regulatory institution that replaced the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS). It is established under EU Re ...
(EIOPA) in Frankfurt.
To complement these authorities, the
European Systemic Risk Board
The European Systemic Risk Board () is a group established on 16 December 2010 in response to the ongoing financial crisis. It is tasked with the macro-prudential oversight of the financial system within the European Union in order to contrib ...
(ESRB) is responsible for
macroprudential oversight across the European Union. It includes representatives from the
European Central Bank
The European Central Bank (ECB) is the prime component of the monetary Eurosystem and the European System of Central Banks (ESCB) as well as one of seven institutions of the European Union. It is one of the world's Big Four (banking)#Intern ...
, national central banks and supervisory authorities of EU member states, and the
European Commission
The European Commission (EC) is the executive of the European Union (EU). It operates as a cabinet government, with 27 members of the Commission (informally known as "Commissioners") headed by a President. It includes an administrative body o ...
. The ESRB is based at the ECB in Frankfurt.
History
The
European Parliament
The European Parliament (EP) is one of the legislative bodies of the European Union and one of its seven institutions. Together with the Council of the European Union (known as the Council and informally as the Council of Ministers), it adopts ...
, in September 2010, backed a deal to set up the European System of Financial Supervision replacing the Committees of Supervisors. The deal set up the EBA in London, ESMA in Paris and EIOPA in Frankfurt, after an initial agreement reached between the European Commission and member states in December 2009 had triggered parliamentary criticisms. The three institutions began operations on 1 January 2011 and replaced the Committees of Supervisors.
* The EBA replaced the
Committee of European Banking Supervisors
The Committee of European Banking Supervisors (CEBS) was an independent advisory group on banking supervision in the European Union (EU). Established by the European Commission in 2004 by Decision 2004/5/EC, and its charter revised on 23 January ...
;
* ESMA replaced the
Committee of European Securities Regulators
The Committee of European Securities Regulators (CESR) was an independent committee of European Securities regulators in the Lamfalussy process established by the European Commission on June 6, 2001.
The role of this committee was to
* Improve th ...
; and
* EIOPA replaced the
.
See also
*
Financial regulation
Financial regulation is a form of regulation or supervision, which subjects financial institutions to certain requirements, restrictions and guidelines, aiming to maintain the stability and integrity of the financial system. This may be handled ...
*
Capital Markets Union
The Capital Markets Union (CMU) is an economic policy initiative launched by the former president of the European Commission, Jean-Claude Junker in the initial exposition of his policy agenda on 15 July 2014. The main target was to create a sin ...
*
Banking Union
The banking union of the European Union is the transfer of responsibility for banking policy from the national to the EU level in several EU member states, initiated in 2012 as a response to the Eurozone crisis. The motivation for banking union w ...
References
Further reading
Regulation (EU) No 1092/2010Larosière reportCommission, European financial supervision(2009)
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External links
European Commission
European Parliament
European Supervisory FrameworkESMA
European Supervisory Authorities (ESAs)Financial Conduct Authority (United Kingdom)
European engagement and legislationBank of England
{{European Union topics
European Union financial market policy
Finance in the European Union
Financial regulatory authorities
Policy and political reactions to the Eurozone crisis
sv:Europeiska systemet för finansiell tillsyn