European Banking Authority

The objective of the European Banking Authority (EBA) is to protect the public interest by contributing to the short, medium and long-term stability and effectiveness of the financial system, for the Union economy, its citizens and businesses (see Article 1 (5) of Regulation (EU) No 1093/2010 of the European Parliament and of the Council). To this end, the Authority shall contribute to:

• improving the functioning of the internal market, including, in particular, a sound, effective and consistent level of regulation and supervision
• ensuring the integrity, transparency, efficiency and orderly functioning of financial markets;
• strengthening international supervisory coordination;
• preventing regulatory arbitrage and promoting equal conditions of competition;
• ensuring the taking of credit and other risks are appropriately regulated and supervised; and
• enhancing customer protection.

In the exercise of its tasks, particular attention is given by EBA to any systemic risk posed by financial institutions, the failure of which may impair the operation of the financial system or the real economy.

Banco de Portugal is represented at the Board of Supervisors of EBA, with voting rights.

EBA is part of the European System of Financial Supervision (ESFS) whose aim is to ensure an adequate supervision of the Union’s financial system, covering macro and micro-prudential supervision. The ESFS comprises the following:

• the European Systemic Risk Board (ESRB),
• the European Banking Authority,
• the European Insurance and Occupational Pensions Authority,
• the European Securities and Markets Authority,
• the Joint Committee of the European Supervisory Authorities,
• the supervisory authorities in the Member States.

This new supervisory framework entered into force on 1 January 2011, in accordance with the relevant legislation, published in Official Journal L 331, 15 December 2010.

EBA replaced the Committee of European Banking Supervisors (CEBS).