The European System of Financial Supervision (ESFS) is the framework for financial supervision in the

European Union The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are Geography of the European Union, located primarily in Europe. The u ...

that has been in operation since 2011. The system consists of the European Supervisory Authorities (ESAs), the European Systemic Risk Board, 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 primary Executive (government), executive arm of the European Union (EU). It operates as a cabinet government, with a number of European Commissioner, members of the Commission (directorial system, informall ...

in 2009 in response to the

2008 financial crisis The 2008 financial crisis, also known as the global financial crisis (GFC), was a major worldwide financial crisis centered in the United States. The causes of the 2008 crisis included excessive speculation on housing values by both homeowners ...

. There are three ESAs. They are responsible for microprudential oversight at the European Union level: * The European Banking Authority (EBA) in Paris; * The

European Securities and Markets Authority The European Securities and Markets Authority (ESMA) is an agency of the European Union located in Paris. ESMA replaced the Committee of European Securities Regulators (CESR) on 1 January 2011. It is one of three European Supervisory Authori ...

(ESMA) in Paris; and * The European Insurance and Occupational Pensions Authority (EIOPA) in Frankfurt. To complement these authorities, the European Systemic Risk Board (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 central component of the 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)#International ...

(ECB), 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 two 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 ...

, 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; * ESMA replaced the

Committee of European Securities Regulators The Committee of European Securities Regulators (CESR) was an independent committee of European Securities commission, Securities regulators, in place from 2001 to 2010. On , it was replaced by the European Securities and Markets Authority (ESMA). ...

; and * EIOPA replaced the Committee of European Insurance and Occupational Pensions Supervisors.

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