European Banking Authority (EBA)

The European Banking Authority (EBA) aims to protect the financial stability, integrity, efficiency, and orderly functioning of the banking sector in the EU. The European banking authority is mandated to assess risks and vulnerabilities in the EU banking sector. There are also some EBA regulations. The European Banking Authority was established in 2011 by taking over the responsibilities of the European Banking Supervisory Board. It was created by the European Parliament and the Council of the European Union to combat financial crimes as an institution above national regulators. Headquartered in England, EBA is the most authoritative regulator of the banking industry. After the UK leaves the European Union, it is planned to shift the central position of EBA to a different European city due to Brexit. The city where EBA is expected to move in Paris.

What Are The Responsibilities of EBA?

EBA has many tasks and duties. However, it is its main task to contribute to the creation of the Single European Rulebook in banking by adopting the Binding Technical Standards (BTS) and Guidelines. The Single Rulebook aims to provide factors such as a single set of harmonized prudential rules for financial institutions across the EU and high protection for depositors, investors, and consumers. In addition, the EBA is tasked with assessing risks for the EU banking sector through regular risk assessment reports. It has the following responsibilities:

Investigating alleged wrong or inadequate application of EU law,
Making decisions for financial institutions when emergencies occur,
Mediation in cross-border situations to resolve disputes between competent authorities,
Operating as an independent advisory body for the European Parliament, the Commission,
Promotes market fairness and transparency for consumer finance products in the domestic market.