მუშკუდიანი ზურაბ

დოქტორანტი; მოწვეული სპეციალისტი, ბიზნესის ადმინისტრირების დეპარტამენტი, აკაკი წერეთლის სახელმწიფო უნივერსიტეტი, ქუთაისი, საქართველო


About Some Aspects of European System of Financial Supervision

(ბიზნესის ფინანსური უზრუნველყოფისა და მართვის აქტუალური საკითხები)


Introduction and aim: The European System of Financial Supervision (ESFS) was created as a decentralized, multi layered system of micro- and macro-prudential authorities in order to ensure consistent and coherent financial supervision in the EU. This supervisory system is currently undergoing major changes further to the introduction of a Banking Union.

In 2009 was established a European System of Financial Supervision (ESFS) as a decentralized network. This ultimately resulted in the creation of a system of micro- and macro-prudential supervision consisting of European and national supervisors. The micro-prudential pillar at European level is formed by the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the European Insurance and Occupational Pensions Authority (EIOPA), which work together in the Joint Committee of the European Supervisory Authorities (ESAs). Macro-prudential oversight is performed by the European Systemic Risk Board (ESRB).

Research methodology: As research methods were used: a systematic approach to the evaluation of the results in the field of financial supervision; induction, deduction, and statistical methods. In the research process we used: Regulation (EU) No 1093/2010 establishing a European Supervisory Authority (European Banking Authority); Regulation (EU) No 1094/2010 establishing a European Supervisory Authority (European Insurance and Occupational Pensions Authority); Regulation (EU) No 1095/2010 establishing a European Supervisory Authority (European Securities and Markets Authority); Regulation (EU) No 1092/2010 on European Union macro-prudential oversight of the financial system and establishing a European Systemic Risk Board; Analytical and statistical International compilations.

Results and implications: In the European Union micro-prudential supervision i.e. the supervision of individual institutions, is characterized by a multi-layered system of authorities. The various layers can be separated according to the area of sectoral supervision and regulation (banking, insurance and securities markets) and the level of supervision and regulation (European and national). In order to ensure consistency and coherence between the different layers, various coordination bodies and instruments have been created. In addition, coordination of the institutions at international level has to be ensured.

European Supervisory Authorities (ESAs) - At European level, the ESAs are responsible for micro-prudential supervision, whereas day-today supervision is conducted at national level. The EBA, the EIOPA, and the ESMA are EU bodies with their own legal personality, which are represented by their respective chairpersons; they are independent and act only in the interests of the Union as a whole.

European Banking Authority (EBA). The EBA’s seat is in London. Its scope includes credit institutions, financial conglomerates, investment firms and payment institutions. A multitude of tasks are conferred on the EBA by its founding regulation. They include: ensuring sound, effective and consistent regulation and supervision; contributing to the stability and effectiveness of the financial system; preventing regulatory arbitrage; ensuring an equal level of supervision; consumer protection; strengthening international supervisory coordination; and appropriate regulation of supervision of credit institutions.

Macro-prudential oversight is carried out at European level by the European Systematic Risk Board (ESRB), established in Frankfurt am Main. Its objective is to prevent and mitigate systemic financial stability risk in the European Union in the light of macro-economic developments. The founding regulations confer various tasks upon, and provide instruments to, the ESRB, including: the collection and analysis of relevant information; identifying and prioritizing risks; issuing warnings and recommendations and monitoring their follow-up; issuing a confidential warning and providing an assessment to the Council when the ESRB determines that an emergency situation may arise; cooperating with other parties of ESFS; coordinating its actions with international financial organizations such as the IMF and the Financial Stability Board (FSB); and carrying out tasks specified in other EU legislation. The European Central Bank (ECB) provides the secretariat for the ESRB, and the President of the ECB is also the Chair of the ESRB.

Conclusion: The financial crisis showed that simple coordination of financial supervision via the ESFS was not sufficient to prevent fragmentation of the European financial market. In order to overcome this obstacle, in mid-2012 the Euro-Commission proposed a Banking Union, which would adopt a more integrated approach and complement the single currency area and the single market. This framework comprised a Single Supervisory Mechanism (SSM), a Single Resolution Mechanism (SRM), and a common deposit guarantee scheme, supplemented by the development of a single supervisory rulebook and a single supervisory handbook.

Keywords: financial supervision, micro-prudential, macro-prudential authorities, supervisory system, banking union, finance crisis

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