Véron, Nicolas, (2017), “Charting the next steps for the EU financial supervisory architecture”, Bruegel, June
The combination of banking union and Brexit justifies a reform of the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) in the near term, in line with the subsidiarity principle. The other EU-level financial authorities, namely the European Insurance and Occupational Pensions Authority (EIOPA), European Systemic Risk Board (ESRB), Single Resolution Board (SRB) and Single Supervisory Mechanism (SSM), do not immediately require a legislative overhaul.
For operational reasons, the October 2017 deadline currently set for the decision on EBA relocation from its current base in London to the EU27 must be respected. In a later phase, the EBA’s governance should also be reviewed to take into account the framework of banking union as is currently in place, including the SRB and SSM.