European Banking Authority (EBA)

The EBA is the successor to the Committee of European Banking Supervisors (CEBS) and was established effective 1 January 2011 by a Regulation of the European Parliament and the Council.

Tasks and powers

The EBA has the following main tasks:

• Contributing to the European Single Rulebook in the banking sector by developing technical standards and guidelines. This ensures harmonised rules and protection for depositors, investors and consumers in the EU.
• Promoting convergence in supervisory practices.
• Assessing risks in the EU banking sector through risk analysis and stress testing.
• Overseeing third-party ICT services and issuance of e-money tokens under DORA and MiCAR.
• Contributing to the fight against financial crime until the new anti-money laundering authority AMLA is established.

To this end, the EBA has power to set binding technical standards, guidelines and recommendations. The binding technical standards are endorsed by the European Commission and are directly applicable. In contrast, guidelines and recommendations are subject to the "comply-or-explain" principle.

Structure of the EBA

Board of Supervisors
Mandated to guide the activities of the EBA, the Board of Supervisors is the supreme decision-making body. The Board of Supervisors is an independent body whose members are required to act in the interests of the European Union. The Board of Supervisors is composed of voting and non-voting members. The voting members are those at the head of national authorities in European member states responsible for the (prudential) supervision of credit institutions. The non-voting members are the EBA Chair and the delegate members from the European Commission, the ECB, the ESRB, the EIOPA and the EFTA.

In principle, the Board of Supervisors decides by majority of votes. Decisions on binding technical standards, guidelines and recommendations are made on the basis of a qualified majority.

Standing Committees and Sub Groups
There are seven Standing Committees, discussing matters on a level just below the Board of Supervisors:

• Standing Committee on Regulation and Policy (SCRePol)
• Standing Committee on Reporting, Data Analysis and Transparency (SCReDAT)
• Supervisory Risk and Innovation Standing Committee (SUPRISC)
• Standing Committee on Consumer Protection and Financial Innovation (SSConFin)
• Crypto Asset Standing Committee (CASC)

Each Standing Committee has Sub Groups: specialised internal working groups focusing on specific issues within the banking sector. The Sub Groups consist of experts from national supervisory authorities and EBA representatives.
 
Resolution Committee (ResCo) and the Standing Committee on Anti-Money Laundering and Countering Terrorist Financing (AMLSC)
In accordance with the Bank Recovery and Resolution Directive (BRRD), the Board of Supervisors has delegated specific tasks regarding the resolution of financial institutions to the ResCo. The Member States’ national resolution authorities are represented in the ResCo. Until the new anti-money laundering authority AMLA is established, tasks related to preventing money laundering and terrorist financing are discussed in the AMLSC and then submitted to the Board of Supervisors.

Management Board
The EBA Management Board is composed of an EBA Chair and six representatives of the national authorities The Management Board members are required to act in the interests of the European Union. The Management Board’s tasks include ensuring that the EBA carries out its mission and tasks in conformity with the regulations, drafting the EBA work programme and approve the EBA's internal operational decisions.

EBA Chairperson
The EBA Chairperson represents the EBA and is elected by the Board of Supervisors. The EBA Chairperson is responsible for the preparation of the activities of the Board of Supervisors and chairs the meetings of the Board of Supervisors and the Management Board. The EBA Chairperson is elected for a term of five years, which may be extended once.

Executive Director
The Executive Director is in charge of the management of the EBA and is elected by the Board of Supervisors. The Executive Director is responsible for the day-to-day management of the EBA and the preparation of the Management Board’s activities. The Executive Director ensures that the EBA’s annual work programme is executed in accordance with the instructions issued by the Board of Supervisors and under the supervision of the Management Board. The Executive Director is elected for a term of five years, which may be extended once.

Banking Stakeholder Group
The Banking Stakeholder Group's objective is to promote consultations with all stakeholders in all areas relevant to the EBA’s tasks. The Banking Stakeholder Group's role is to help facilitate consultation with stakeholders on binding technical standards, guidelines and recommendations of the EBA. Members of the EBA Banking Stakeholder Group are appointed by the Board of Supervisors through an open selection process that seeks geographical and gender balance. Members represent various groups, including financial institutions within the EU, their employee representatives, consumers, users of banking services, representatives of small and medium-sized enterprises (SMEs) and leading independent academics.

Joint Committee
The EBA is the counterpart of the European Securities and Markets Authority (ESMA) in the securities sector and the European Insurance and Occupational Pensions Authority (EIOPA) in the insurance and pensions sector. Together, EBA, ESMA and EIOPA are referred to as the three European Supervisory Authorities (ESAs). The Joint Committee promotes cooperation and exchange between the ESAs by jointly examining and monitoring potential new risks to financial market participants and the financial system as a whole. It consists of the Chairpersons of the three Authorities and a number of observing members, including the Executive Board Members of the ESAs, and representatives from the ESRB and the European Commission.