The three fledgling regulators overseeing the European Union’s financial sector can take a number of short-term and longer-term steps to bolster their clout within the bloc, according to a review of the supervisory agencies released by the European Commission last week.
The review was the first since the three watchdogs – the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA), and the European Insurance and Occupational Pensions Authority (EIOPA) — were established in 2011. Together the three comprise the European Supervisory Authorities (ESAs), designed to tighten financial supervision in the EU, plug holes exposed by the 2008 financial collapse, and ensure consistent application of EU rules by national regulators.
