European Banking Authority

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Updated: Aug 20, 2021

The main task of the EBA is to contribute, through the adoption of binding Technical Standards (BTS) and Guidelines, to the creation of the European Single Rulebook in banking. The Single Rulebook aims at providing a single set of harmonised prudential rules for financial institutions throughout the EU, helping create a level playing field and providing high protection to depositors, investors and consumers.

The Authority also plays an important role in promoting convergence of supervisory practices to ensure a harmonised application of prudential rules. Finally, the EBA is mandated to assess risks and vulnerabilities in the EU banking sector through, in particular, regular risk assessment reports and pan-European stress tests.

Other tasks set out in the EBA’s mandate include:

investigating alleged incorrect or insufficient application of EU law by national authorities taking decisions directed at individual competent authorities or financial institutions in emergency situations mediating to resolve disagreements between competent authorities in cross-border situations acting as an independent advisory body to the European Parliament, the Council or the Commission. taking a leading role in promoting transparency, simplicity and fairness in the market for consumer financial products or services across the internal market. To perform these tasks, the EBA can produce a number of regulatory and non regulatory documents including binding Technical Standards, Guidelines, Recommendations, Opinions and ad-hoc or regular reports.

The Binding Technical Standards are legal acts which specify particular aspects of an EU legislative text (Directive or Regulation) and aim at ensuring consistent harmonisation in specific areas. The EBA develops draft BTS which are finally endorsed and adopted by the European Commission. Contrary to other documents such as Guidelines or Recommendations, the BTS are legally binding and directly applicable in all Member States.

The EBA was originally located in London, but with the Brexit (Britain leaving the European Union), the EBA was transferred to Paris after a vote amongst the remainding member countries in the European Union.

Reference: http://www.eba.europa.eu



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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.