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 de ...

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 ...

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 f ...

. 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 Sup ...

(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

(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 most important centr ...

, national central banks and supervisory authorities of EU member states, and the

. 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

Committee of European Insurance and Occupational Pensions Supervisors 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 ...

References

External links

European Commission

European Parliament
European Supervisory Framework
ESMA
European Supervisory Authorities (ESAs)
Financial Conduct Authority (United Kingdom)
European engagement and legislation
Bank 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

History

See also

References

Further reading

External links