{"id":17816,"date":"2022-09-18T09:25:49","date_gmt":"2022-09-18T09:25:49","guid":{"rendered":"http:\/\/legalblog.ie\/?p=17816"},"modified":"2022-09-25T14:04:40","modified_gmt":"2022-09-25T14:04:40","slug":"institutions-5","status":"publish","type":"post","link":"https:\/\/legalblog.ie\/institutions-5\/","title":{"rendered":"Institutions I [EU]"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_63 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/legalblog.ie\/institutions-5\/#European_Banking_Authority_EBA\" title=\"European Banking Authority (EBA)\">European Banking Authority (EBA)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/legalblog.ie\/institutions-5\/#Consistent_application_of_EU_law\" title=\"Consistent application of EU law\">Consistent application of EU law<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/legalblog.ie\/institutions-5\/#Stress_tests\" title=\"Stress tests\">Stress tests<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/legalblog.ie\/institutions-5\/#Breach_of_EU_law\" title=\"Breach of EU law\">Breach of EU law<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/legalblog.ie\/institutions-5\/#European_financial_supervision\" title=\"European financial supervision\">European financial supervision<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/legalblog.ie\/institutions-5\/#Payment_services\" title=\"Payment services\">Payment services<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/legalblog.ie\/institutions-5\/#Headquarters\" title=\"Headquarters\">Headquarters<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/legalblog.ie\/institutions-5\/#Application_Background\" title=\"Application &amp; Background\">Application &amp; Background<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/legalblog.ie\/institutions-5\/#MAIN_DOCUMENT\" title=\"MAIN DOCUMENT\">MAIN DOCUMENT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/legalblog.ie\/institutions-5\/#European_Systemic_Risk_Board\" title=\"European Systemic Risk Board\">European Systemic Risk Board<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/legalblog.ie\/institutions-5\/#Mandate_objectives_and_tasks\" title=\"Mandate, objectives and tasks\">Mandate, objectives and tasks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/legalblog.ie\/institutions-5\/#Organisation\" title=\"Organisation\">Organisation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/legalblog.ie\/institutions-5\/#Warnings_and_recommendations\" title=\"Warnings and recommendations\">Warnings and recommendations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/legalblog.ie\/institutions-5\/#Application_Background-2\" title=\"Application &amp; Background\">Application &amp; Background<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"European_Banking_Authority_EBA\"><\/span>European Banking Authority (EBA)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Regulation (EU) No 1093\/2010 establishing the European Banking Authority<\/p>\n<p>It sets up the EU agency which works to ensure effective and consistent prudential regulation and supervision across the European banking sector. The agency&#8217;s overall objectives are to maintain financial stability in the EU and to safeguard the integrity, efficiency and orderly functioning of the banking sector.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Consistent_application_of_EU_law\"><\/span>Consistent application of EU law<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The European Banking Authority (EBA):<\/p>\n<p>draws up regulatory technical standards to specify the banking legislation to be adopted by the European Commission, where the Council and the European Parliament delegate this power to the Commission;<br \/>\nhas the power to issue guidelines and recommendations on the application of EU legislation.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Stress_tests\"><\/span>Stress tests<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The EBA has a prominent role in the EU-wide stress test exercise that examines banks\u2019 resilience with regard to adverse market developments, and any systemic risks in the EU financial system.<\/p>\n<p>It initiates and coordinates stress tests in the EU with the national authorities responsible for supervising banks.<br \/>\nIn cooperation with the European Systemic Risk Board (ESRB), the European Central Bank (ECB) and the Commission, the EBA defines a common methodology for each edition of the stress test.<br \/>\nIt also monitors and assesses market and credit trends.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Breach_of_EU_law\"><\/span>Breach of EU law<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The EBA has the power to investigate the alleged incorrect application by a national supervisor of EU banking and financial legislation (in particular when it fails to ensure that a bank complies with the requirements laid down in that legislation).<br \/>\nThe EBA may address a recommendation to the particular national supervisor. If the supervisor does not comply with this, the Commission can then be empowered to issue a formal opinion taking into account the EBA\u2019s recommendation.<\/p>\n<p>If a national supervisor persists in not complying with the law, the EBA can adopt decisions directly addressed to the bank. This power can only be used in exceptional circumstances.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"European_financial_supervision\"><\/span>European financial supervision<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The EBA is part of the European system of financial supervision created in 2010, which, in addition to the ESRB, comprises 2 other supervisory organisations:<\/p>\n<p>the supervisory authority in charge of the insurance and pension sector, based in Frankfurt am Main (European Insurance and Occupational Pensions Authority \u2014 EIOPA);<br \/>\nthe supervisory authority in charge of the financial markets, based in Paris (European Securities and Markets Authority \u2014 ESMA).<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Payment_services\"><\/span>Payment services<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Directive (EU) 2015\/2366 introduced revised rules for payment services in the EU. It strengthens the role of the EBA and requires it to issue guidelines and draft regulatory technical standards in various fields, for example to clarify the rules on \u2018passporting\u2019 for payment institutions operating in several EU countries, or to ensure the establishment of adequate security requirements.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Headquarters\"><\/span>Headquarters<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Under Regulation (EU) 2018\/1717, in the context of the United Kingdom\u2019s intention to withdraw from the EU, the seat of the EBA was relocated from London to Paris as of 30 March 2019.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Application_Background\"><\/span>Application &amp; Background<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>It has applied since 1 January 2011.<\/p>\n<p>For more information, see:<\/p>\n<p>European Banking Authority (European Banking Authority).<\/p>\n<h3><span class=\"ez-toc-section\" id=\"MAIN_DOCUMENT\"><\/span>MAIN DOCUMENT<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>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 (OJ L 331, 15.12.2010, pp. 12-47)<\/p>\n<p>Successive amendments to Regulation (EU) No 1093\/2010 have been incorporated into the original document. This consolidated version is of documentary value only.<\/p>\n<p>RELATED DOCUMENTS<\/p>\n<p>Regulation (EU) 2018\/1717 of the European Parliament and of the Council of 14 November 2018 amending Regulation (EU) No 1093\/2010 as regards the location of the seat of the European Banking Authority (OJ L 291, 16.11.2018, pp. 1-2)<\/p>\n<p>Directive 2014\/65\/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002\/92\/EC and Directive 2011\/61\/EU (OJ L 173, 12.6.2014, pp. 349-496)<\/p>\n<p>See consolidated version.<\/p>\n<p>Council Regulation (EU) No 1096\/2010 of 17 November 2010 conferring specific tasks upon the European Central Bank concerning the functioning of the European Systemic Risk Board (OJ L 331, 15.12.2010, pp. 162-164)<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"European_Systemic_Risk_Board\"><\/span>European Systemic Risk Board<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In the aftermath of the 2008 global financial crisis, the European Union introduced legislation to strengthen EU arrangements for the supervision of the financial sector. These were designed to restore confidence in the financial system and to prevent any risks that might destabilise the global financial system.<\/p>\n<p>It establishes the European Systemic Risk Board (ESRB) as part of the new European System of Financial Supervision (ESFS), which also includes:<\/p>\n<p>\u2014\u00a0the European Banking Authority;<br \/>\n\u2014\u00a0the European Insurance and Occupational Pensions Authority;<br \/>\n\u2014\u00a0the European Securities and Markets Authority;<br \/>\n\u2014\u00a0the Joint Committee of European Supervisory Authorities;<br \/>\n\u2014\u00a0the supervisory authorities in the EU countries.<br \/>\nThe new supervisory architecture also includes a regulation that gives the European Central Bank (ECB) certain specific tasks to support the ESRB.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Mandate_objectives_and_tasks\"><\/span>Mandate, objectives and tasks<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The ESRB is based in Frankfurt am Main (Germany). It is responsible for monitoring and analysing risk in the financial system as a whole (also known as macro-prudential oversight). To achieve this, the ESRB in particular:<\/p>\n<p>\u2014\u00a0identifies systemic risks and classifies them according to their priority;<br \/>\n\u2014\u00a0issues warnings where systemic risks are deemed to be significant and makes them public if necessary;<br \/>\n\u2014\u00a0recommends remedial action in response to risks identified;<br \/>\n\u2014\u00a0can transmit a confidential warning and assessment to the Council when it considers that an emergency situation is likely to occur;<br \/>\n\u2014\u00a0monitors the measures taken in response to warnings and recommendations;<br \/>\n\u2014\u00a0coordinates with international financial organisations like the International Monetary Fund and the Financial Stability Board (FSB).<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Organisation\"><\/span>Organisation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The ESRB has the following structure:<\/p>\n<p>\u2014\u00a0a General Board that ensures the performance of tasks by taking the necessary decisions;<br \/>\n\u2014\u00a0a Steering Committee which assists in the decision-making process;<br \/>\n\u2014\u00a0a Secretariat responsible for day-to-day business and providing support;<br \/>\n\u2014\u00a0an Advisory Scientific Committee and an Advisory Technical Committee to provide advice and assistance.<\/p>\n<p>The ESRB has a chair who represents the ESRB externally and two vice-chairs. The ECB provides analytical, statistical, logistical and administrative support to the ESRB by running the ESRB\u2019s Secretariat.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Warnings_and_recommendations\"><\/span>Warnings and recommendations<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In the event of significant systemic risks to its objective, the ESRB provides warnings and, where appropriate, issues recommendations for remedial action, including legislative initiatives. These warnings or recommendations are addressed in particular to:<\/p>\n<p>\u2014\u00a0the EU as a whole;<br \/>\n\u2014\u00a01 or more EU countries;<br \/>\n\u2014\u00a01 or more European supervisory authorities;<br \/>\n\u2014\u00a01 or more national supervisory authorities; or<br \/>\n\u2014\u00a0the European Commission in respect of relevant EU legislation.<\/p>\n<p>Addressees of recommendations must comply or provide an explanation for any inaction. If the ESRB decides that its recommendation has not been followed or that addressees have not provided adequate justification for their inaction, it confidentially informs the addressees, the Council and, where relevant, the European supervisory authority concerned.<\/p>\n<p>The further evolution of the European surveillance system<\/p>\n<p>As the financial crisis evolved and following the worsening sovereign debt crisis in the euro area in 2010-2011, the further integration of the euro area banking systems became necessary. This is why, based on the Commission\u2019s roadmap for setting up a banking union, the European institutions created the following.<\/p>\n<p>\u2014\u00a0A Single Supervisory Mechanism (SSM), placing the ECB as the central supervisor for euro area banks (around 6,000 banks). Non-euro area countries may also decide to join.<br \/>\n\u2014\u00a0A Single Resolution Mechanism (SRM), the objective of which is to ensure the orderly resolution of failing banks covered by the SSM without using taxpayers\u2019 money.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Application_Background-2\"><\/span>Application &amp; Background<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>From 16 December 2010.<\/p>\n<p>BACKGROUND<\/p>\n<p>\u2014<\/p>\n<p>Banking and finance<br \/>\n\u2014<\/p>\n<p>Financial supervision<br \/>\n\u2014<\/p>\n<p>Establishment of the ESRB<br \/>\nACT<\/p>\n<p>Regulation (EU) No 1092\/2010 of the European Parliament and of the Council of 24 November 2010 on European Union macro-prudential oversight of the financial system and establishing a European Systemic Risk Board<\/p>\n<p>REFERENCE<\/p>\n<p>Act<\/p>\n<p>Entry into force<\/p>\n<p>Deadline for transposition in the Member States<\/p>\n<p>Official Journal<\/p>\n<p>Regulation (EU) No 1092\/2010<\/p>\n<p>16.12.2010<\/p>\n<p>&#8211;<\/p>\n<p>OJ L 331, 15.12.2010, pp. 1-11<\/p>\n<p>RELATED ACTS<\/p>\n<p>Council Regulation (EU) No 1096\/2010 of 17 November 2010 conferring specific tasks upon the European Central Bank concerning the functioning of the European Systemic Risk Board (OJ L 331, 15.12.2010, pp. 162-164)<\/p>\n<p>Directive 2010\/78\/EU of the European Parliament and of the Council of 24 November 2010 amending Directives 98\/26\/EC, 2002\/87\/EC, 2003\/6\/EC, 2003\/41\/EC, 2003\/71\/EC, 2004\/39\/EC, 2004\/109\/EC, 2005\/60\/EC, 2006\/48\/EC, 2006\/49\/EC and 2009\/65\/EC in respect of the powers of the European Supervisory Authority (European Banking Authority), the European Supervisory Authority (European Insurance and Occupational Pensions Authority) and the European Supervisory Authority (European Securities and Markets Authority) (OJ L 331, 15.12.2010, pp. 120-161). See consolidated version<\/p>\n<!--themify_builder_content-->\n<div id=\"themify_builder_content-17816\" data-postid=\"17816\" class=\"themify_builder_content themify_builder_content-17816 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n","protected":false},"excerpt":{"rendered":"<p>European Banking Authority (EBA) Regulation (EU) No 1093\/2010 establishing the European Banking Authority It sets up the EU agency which works to ensure effective and consistent prudential regulation and supervision across the European banking sector. The agency&#8217;s overall objectives are to maintain financial stability in the EU and to safeguard the integrity, efficiency and orderly [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[128,166],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/17816"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=17816"}],"version-history":[{"count":5,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/17816\/revisions"}],"predecessor-version":[{"id":18354,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/17816\/revisions\/18354"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=17816"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=17816"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=17816"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}