The European Commission wants to create a new financial stability monitor but continue to put separate bodies in charge of efforts to oversee individual banking, insurance and securities businesses.
The European Commission, a body that serves as the executive branch for the European Union, wants to create a new European Systemic Risk Council to assess “risks to the stability of the financial system as a whole,” officials say in a release describing the proposal.
The European Commission calls systemic oversight as “macro-prudential supervision.”
“The ESRC will provide early warning of systemic risks that may be building up and, where necessary, recommendations for action to deal with these risks,” officials say.
To handle ordinary regulation of individual financial services companies, or “micro-prudential supervision,” the European Commission wants to create three new “authorities” – the European Insurance and Occupational Pension Authority, the European Banking Authority, and the European Securities Authority.
The EIOPA, the EBA and the ESA would replace the existing Committee of European Insurance and Occupational Pension Supervisors, the Committee of European Banking Supervisors, and the Committee of European Securities Regulators.
The new EIOPA would have its main offices in Frankfurt am Main, the location of the main offices of the CEIOPS.