European supervisory authorities

The institutional framework governing EU financial market supervision is defined by various authorities. The key supervisory framework is the European System of Financial Supervision (ESFS) comprising the European Supervisory Authorities (ESAs) and the European Systemic Risk Board (ESRB). The European Central Bank and the authorities of the Banking Union also play a role in supervising the financial markets.
FINMA continuously follows European developments, as well as the activities of the responsible European bodies, regarding financial market and supervisory matters.

European Supervisory Authorities (ESAs)

The three European supervisory authorities, i.e. the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA) provide micro-prudential supervision of the EU financial markets along with the national supervisory authorities of the member states. While ongoing supervision of financial institutions still rests with the national supervisory authorities, the ESAs are tasked with developing and implementing a common regulatory framework and convergent supervisory practice in the EU. The particular role of the ESAs is to advise EU bodies in the legislative process, develop regulatory standards and coordinate national supervisory authorities.

European Systemic Risk Board (ESRB)

The ESRB is responsible for macro-prudential oversight of the financial markets. It draws up warnings and recommendations for risk mitigation measures and supervises their implementation. The ESRB has no legal personality and is affiliated to the European Central Bank.

European Central Bank (ECB)

The Frankfurt-based European Central Bank (ECB) is the central bank for Europe's single currency, the euro. Its main task is to preserve the euro's purchasing power and thereby maintain price stability in the eurozone. It has also taken on a supervisory role as part of the Banking Union. The ECB acts as a supervisory authority for certain banks in the eurozone under the Single Supervisory Mechanism (SSM). It has thus established its own authority, the Single Supervisory Board (SSB).

Banking Union

The Banking Union comprises the Single Supervisory Mechanism (SSM) and the Single Resolution Mechanism (SRM) for banks. The regulatory body of the Single Supervisory Mechanism is the ECB's Single Supervisory Board (SSB). The Brussels-based Single Resolution Board is responsible for the resolution of European banks.