European System of Financial Supervision
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The European System of Financial Supervision (ESFS) is a framework established by the European Union to promote effective supervision and regulation of the financial sector within the EU. It comprises three main components: the European Supervisory Authorities, the Joint Committee, and the national supervisory authorities of EU member states.
European Supervisory Authorities (ESAs): The ESAs work to enhance the stability, transparency, and integrity of the EU financial system, and to facilitate cooperation and coordination among national supervisory authorities and contribute to the development of harmonised regulatory standards across the EU. The ESAs are three regulatory agencies established by the EU in 2010.
Joint Committee: The Joint Committee of the ESAs is a forum where the ESAs collaborate and exchange information on cross-sectoral issues and common challenges. It helps to coordinate the activities of the ESAs and fosters consistent regulatory practices.
National supervisory authorities: The ESFS also involves national supervisory authorities from EU member states. These authorities remain responsible for the day-to-day supervision of financial institutions within their respective jurisdictions. They collaborate with the ESAs and participate in the work of the ESFS to ensure consistent implementation of EU regulations and standards.
The ESFS aims to promote financial stability, enhance consumer protection, and ensure the effective functioning of the EU single market for financial services. It strengthens supervisory cooperation and coordination, facilitates information exchange, and contributes to the development of a more integrated and resilient financial system across the EU.
European Supervisory Authorities (ESAs): The ESAs work to enhance the stability, transparency, and integrity of the EU financial system, and to facilitate cooperation and coordination among national supervisory authorities and contribute to the development of harmonised regulatory standards across the EU. The ESAs are three regulatory agencies established by the EU in 2010.
- European Banking Authority: It is responsible for the regulation and supervision of the banking sector within the EU. It sets regulatory standards, conducts stress tests, and promotes supervisory convergence across member states.
- European Insurance and Occupational Pensions Authority: It focuses on the regulation and supervision of insurance and occupational pension sectors. It develops regulatory standards, promotes consumer protection, and facilitates cooperation among national supervisory authorities.
- European Securities and Markets Authority: It is responsible for the regulation and supervision of securities markets, investment firms, and other financial instruments within the EU. It sets standards, promotes investor protection, and fosters supervisory convergence among member states.
Joint Committee: The Joint Committee of the ESAs is a forum where the ESAs collaborate and exchange information on cross-sectoral issues and common challenges. It helps to coordinate the activities of the ESAs and fosters consistent regulatory practices.
National supervisory authorities: The ESFS also involves national supervisory authorities from EU member states. These authorities remain responsible for the day-to-day supervision of financial institutions within their respective jurisdictions. They collaborate with the ESAs and participate in the work of the ESFS to ensure consistent implementation of EU regulations and standards.
The ESFS aims to promote financial stability, enhance consumer protection, and ensure the effective functioning of the EU single market for financial services. It strengthens supervisory cooperation and coordination, facilitates information exchange, and contributes to the development of a more integrated and resilient financial system across the EU.
