European System of Financial Supervision

The European System of Financial Supervision is the framework of financial supervision in the European Union in operation since 2011. First proposed by the European Commission in 2009, in response to the financial crisis of 2007–2010, it created the European Supervisory Authorities. To complement these authorities, there is a European Systemic Risk Board (ESRB), under the responsibility of the European Central Bank.^[1] The European System of Financial Supervision is sometimes abbreviased ESFS.

European Supervisory Authorities

There are three European Supervisory Authorities (ESAs):

• The European Banking Authority (EBA) in London.
• The European Securities and Markets Authority (ESMA) in Paris.
• The European Insurance and Occupational Pensions Authority (EIOPA) In Frankfurt.

History

A deal to set up the EBA in London, ESMA in Paris and EIOPA in Frankfurt received backing from the European Parliament in September 2010, 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.^[2]

• The EBA replaced the Committee of European Banking Supervisors.
• ESMA replaced the Committee of European Securities Regulators.
• EIOPA replaced the Committee of European Insurance and Occupational Pensions Supervisors.

See also

• Financial regulation

References

External links

• Regulation (EU) No 1092/2010
• Larosière report
• Commission, European financial supervision (2009)
• "Proposal for ... establishing a European Banking Authority" (PDF). European Commission. 2009-09-23. Retrieved 2011-01-15.