European Banking Authority (EBA)
The 2008 financial crisis brought to light many shortcomings in financial supervision. It exposed the lack of cooperation, coordination and consistency between Member States in their national management of the practices of financial institutions. This Regulation creates a European Banking Authority that will contribute to integration and stability in the banking sector in Europe, and provide improved and more consistent supervision.
Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC.
This Regulation establishes the European Banking Authority (EBA). It forms part of the package of measures implemented to reform the European System of Financial Supervision (ESFS) which creates three other organisations to monitor financial activities:
- the European Systemic Risk Board;
- the European Insurance and Occupational Pensions Authority;
- the European Securities and Markets Authority.
This package also reforms existing financial legislation with the "Omnibus" Directive and the Regulation conferring new tasks upon the European Central Bank.
Supervision of the financial system of the European Union (EU) is further strengthened by the activities of:
- the Joint Committee of the European Supervisory Authorities;
- the competent or supervisory authorities of Member States.
Establishment and legal status of the EBA
The EBA has the objective of safeguarding the stability and effectiveness of the banking system and focuses particularly on any risk presented by financial institutions, the failure of which may impair the operation of the financial system or the real economy. It acts in the following fields of activities:
- credit institutions;
- financial conglomerates;
- investment firms;
- payment institutions;
- e-money institutions.
The EBA has a legal personality and has its seat in London.
Tasks and powers of the EBA
The EBA has certain tasks, in particular:
- to contribute to the establishment of regulatory and supervisory standards and practices;
- to monitor and assess the market and credit trends, particularly for households and SMEs;
- to foster depositor and investor protection.
In order to fulfil these objectives, the EBA has a leading role consisting chiefly of:
- the elaboration of draft regulatory and implementing technical standards;
- issuing guidelines and recommendations;
- providing a (centrally accessible) database of financial institutions in the area of its competence.
The EBA also carries out activities relating to consumer protection, for example by analysing consumer trends and preparing training standards for the industry.
Organisation of the EBA
The EBA has a Board of Supervisors which has the task of giving guidance to the work of the Authority. The Board is composed of:
- a Chairperson;
- the head of the competent national public authority;
- a representative of the Commission;
- a representative of the European Central Bank;
- a representative of the ESRB;
- and a representative of each of the other two European Supervisory Authorities.
The EBA also has a Management Board.
Joint bodies of the European Supervisory Authorities
The joint bodies of the European Supervisory Authorities are:
- the Joint Committee of the European Supervisory Authorities which is to cooperate with the authorities regarding financial conglomerates, accounting and auditing, micro-prudential analyses, retail investment products, measures combating money laundering and information exchange with the ESRB;
- the Board of Appeal which provides legal advice on the legality of the ABE’s exercise of its powers.
Any natural or legal person may appeal against a decision of the ABE, in writing, within two months of notification of the decision. The Board of Appeal has a period of two months after the appeal has been lodged to confirm the decision taken by the ABE or to remit the case.
This Regulation repeals Decision 2009/78/EC.
|Act||Entry into force||Deadline for transposition in the Member States||Official Journal|
Regulation (EU) No 1093/2010
OJ L 331 of 15.12.2010