European System of Financial Supervision (ESFS) - review

Key Points

The EESC

• agrees on the need for corrective action to improve the operation of the European System of Financial Supervision (ESFS).

• calls for the promotion of measures to facilitate coordination between the ESFS, the new SSM arrangement and the Single Resolution Mechanism (SRM.

• demands the rationalisation of the regulatory functions of the ESFS institutions with a view to simplifying the regulatory framework and making procedures more transparent and effective.

• asks for a medium-term strategy designed to bring about a process of organisational and functional consolidation on the part of the supervisors (by considering the possibility of a single seat and the adoption of a twin peaks model.)

• demands the promotion of mechanisms to support the priorities of the eurozone countries with particular reference to the banking market and single supervisory mechanisms that make specific provision for membership of non-eurozone countries.

• calls on the ESRB's Advisory Scientific Committee and relevant ESA committees or expert groups - having obtained the opinion of the stakeholder groups – to make specific proposals for improvement;

• calls on the European Commission to assess the feasibility of more structural measures regarding the organisation of the ESFS and the authorities' funding mechanisms.