European system of financial supervision

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The European System of Financial ( english E uropean S ystem of F inancial S upervision, ESFS ) is a system of agencies and committees of the European Union for financial market supervision , which started its work on 1 January 2011th The most important part of the ESFS are three European Supervisory Authorities (English E uropean S upervisory A uthorities, ESA ) for banking, insurance and securities beings. The European financial system is not to be confused with the single banking supervisory mechanism (English Single Supervisory Mechanism, SSM ), the addition in November 2014 joined the central bank supervision of major banks in the euro zone into force.

backgrounds

As a result of the negative experiences of the global financial crisis from 2007 and the euro crisis from 2009, efforts in the EU to strengthen joint regulation of European financial markets grew . The United Kingdom and Germany were initially unwilling to transfer powers of their financial supervisory authorities (in Germany the Bundesbank and the Bundesanstalt für Finanzdienstleistungsaufsicht ) to the European level. After months of blockade, in September 2010 they turned into compromise negotiations with the European Parliament , which insisted on central supervision with rights of intervention. The compromise stipulates that the regulation of the financial markets will be largely decided at European level, but compliance with the standards will continue to be monitored primarily by the national supervisory authorities.

The ESFS was approved by the European Parliament on September 22nd, 2010.

Composition and tasks of the ESFS

According to Art. 2 Para. 2 ESMA Regulation, the ESFS is composed of:

  • three European financial supervisory authorities created by the reorganization of existing supervisory committees ( CEBS , CEIOPS , CESR ):
  • European Systemic Risk Board ( E uropean S ystemic R isk B oard, ESRB ), headquartered at the European Central Bank in Frankfurt. The ESRB is supposed to monitor the stability of the entire financial system and to this end it is in constant exchange of information with the three financial supervisory authorities. The ECB itself is not an official part of the ESFS, but it is closely linked to it. In the area of ​​banking regulation and supervision, the ECB only acts in an advisory capacity.
  • Joint Committee of European Supervisory Authorities.
  • the competent supervisory authorities of the member states.

The task of the three financial supervisory authorities is to develop uniform standards, guidelines and recommendations and to monitor the application of EU law. The authorities only have access rights in exceptional cases, for example if a national supervisory authority violates EU law.

Allocation of tasks between the EBA and the ECB from November 2014

New ECB building in Frankfurt

In the further course of the year, the European system of financial supervision introduced in 2011 proved to be insufficient to cope with the financial crisis in Europe. In particular, the experience from the sovereign debt crisis in Cyprus since 2011 has shown that the national banking supervision had not responded adequately to the crisis. On September 12, 2012, the European Commission presented a package of measures to create a uniform supervisory mechanism for banks under the leadership of the European Central Bank as a first step towards a European banking union . In December 2012, the European finance ministers agreed on a key points to create uniform banking supervision mechanism ( S ingle S upervisory M echanism, SSM ). On March 19, 2013, the Council of the European Union announced that an agreement had been reached with the European Parliament on the establishment of a central European banking supervisory authority. According to this, the ECB should monitor all significant banks in the euro zone with total assets over 30 billion euros or 20 percent of a country's economic output. This means that only around 120 of the total of around 6,000 banks in the eurozone fall directly under the control of the ECB. The rest will continue to be monitored by the national supervisory authorities. In Germany, the savings banks and Volksbanks in particular are exempt from central control. From November 2014 the ECB took over its new tasks.

The European Banking Authority (EBA) should continue to develop uniform supervisory standards for the 28 member states of the EU; the national supervisory authorities remain primarily responsible for the supervision of credit institutions. For the big banks in the 18 countries of the euro zone, which have been directly monitored by the European Central Bank (ECB) since November 2014, the ECB is taking the place of the previously competent national supervisory authorities.

Individual evidence

  1. ↑ nachrichten.rp-online.de ( Memento of the original from September 9, 2010 in the Internet Archive ) Info: The archive link has been inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. Rheinische Post of September 3, 2010 (page B1): Brussels creates powerful EU financial supervision @1@ 2Template: Webachiv / IABot / nachrichten.rp-online.de
  2. ↑ Parliament gives the green light for the new financial supervision . European Parliament. September 22, 2010. Retrieved May 20, 2013.
  3. ↑ Regulation (EU) No. 1095/2010 of the European Parliament and of the Council of November 24, 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No. 716/2009 / EC and repealing the decision 2009/77 / EC of the Commission , accessed on May 20, 2013
  4. ↑ Official website of the ESRB