The European System of Financial Supervisors (ESFS) is a set of independent financial supervisory authorities that have been created to strengthen the financial stability of the European Union (EU).
The ESFS is composed of three European financial supervisory authorities, which are:
– The European Banking Authority (EBA)
– The European Securities and Markets Authority (ESMA)
– The European Insurance and Occupational Pensions Authority (EIOPA)
Each authority has the task of supervising the financial institutions under its jurisdiction and ensuring their financial stability. EBA deals with banks, ESMA with financial markets and EIOPA with insurance companies and pension funds.
The ESFS works closely with national financial supervisors and EU regulators to ensure effective coordination of financial supervision and consistent application of regulatory standards across the European Union.
