European Supervisory Authorities
ESBG is largely in favour of maintaining the status quo: include some adaptations in order to cater to recent developments such as the establishment of the Single Supervisory Mechanism. Bear in mind that numerous aspects cannot be properly evaluated at this point in time owing to the comparative youth of the European System of Financial Supervision.
Updated: Janaury 2017
In our opinion the primordial function of the ESAs is and should remain the drafting of regulatory and implementing technical standards, based on clear mandates from the European institution ("Level 1") texts and following appropriate consultation procedures within reasonable time frames in order to ensure high quality responses from the industry. The ESAs are very well equipped to perform this task and to date have produced convincing results.
The ESAs' internal structure includes Stakeholder Groups (SGs), which are forums of interest group representatives that advise the ESAs regarding regulatory activity. In ESBG's opinion, SGs are an excellent way of involving the banking industry and other stakeholders, because they institutionalise stakeholder participation on the frontline of EU financial policymaking. However, their concrete impact on the ESAs' work could still be improved.
Owing to the establishment of the Single Supervisory Mechanism (SSM), the interactions and synergies between the EBA and the ECB will need to be clarified. Moreover, cooperation between the EBA and the ECB will also be paramount with regards to issues raised within banking groups that have entities both in participating and non-participating Member States in the SSM.
The European System of Financial Supervision (ESFS) was created as response to the financial crisis and became operational in 2011. This new institutional architecture, consisting of the three European Supervisory Authorities (ESAs) - the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the European Insurance and Occupational Pensions Authority (EIOPA) - the European Systemic Risk Board (ESRB) and the Member States' national supervisory authorities, is currently in the process of being reviewed, as mandated in the founding regulations. The structure and performance of the ESAs and the ESRB within the system are being examined, as well as the system as a whole, with a view to improving the effectiveness and efficiency.