European System of Financial Supervision

The European System of Financial Supervision (ESFS) is the framework for financial supervision in the European Union 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.^[1] It was proposed by the European Commission in 2009 in response to the financial crisis of 2007–08.

There are three ESAs. They are responsible for microprudential oversight at the European Union level:^[2]

• The European Banking Authority (EBA) in Paris;
• The European Securities and Markets Authority (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, national central banks and supervisory authorities of EU member states, and the European Commission. The ESRB is based at the ECB in Frankfurt.^[3]