The European System of Financial Supervision (ESFS) comprises the European Systemic Risk Board (ESRB), the three European Supervisory Authorities (ESAs), and the national supervisory authorities.
The European System of Financial Supervision (ESFS) comprises the European Systemic Risk Board (ESRB), the three European Supervisory Authorities (ESAs), and the national supervisory authorities.
The ESFS covers both macroprudential and microprudential supervision. Its main task is to ensure consistent and appropriate financial supervision throughout the European Union (EU).
European Systemic Risk Board (ESRB)
The European Systemic Risk Board (ESRB) is responsible for macroprudential supervision of the financial system in the EU.
Its main tasks include:
- collecting and analysing information to identify systemic risks;
- issuing warnings where systemic risks are deemed to be significant;
- issuing recommendations for action in response to risks identified;
- monitoring compliance with its warnings and recommendations;
- cooperating and coordinating with ESAs and international fora.
European Supervisory Authorities (ESAs)
The European Supervisory Authorities (ESAs) are:
- the European Banking Authority (EBA),
- the European Insurance and Occupational Pensions Authority (EIOPA), and
- the European Securities and Markets Authority (ESMA).
The ESAs focus on harmonising financial supervision in the EU by developing the single rulebook, a set of prudential standards for financial institutions. The ESAs help to ensure the consistent application of the rulebook to create a level playing field. They are also mandated to assess potential risks and vulnerabilities in the financial sector.