European Banking Authority

According to a draft regulation of the European Commission, the European Banking Authority (EBA), based in London, will be allowed to issue instructions directly to commercial banks. This will apply in case the stability of the financial markets is in danger and if the responsible national financial authority does not take appropriate action. The EBA is part of the prospective European financial supervision, which is due to come into operation in 2011. Also included are the insurance supervision 'European Insurance and Occupational Pensions Authority' (EIOPA), which is based in Frankfurt, and the Paris-based stock exchange supervision 'European Securities and Markets Authority' (ESMA). Moreover, there will be a new systemic risk council at the European Central Bank, the task of which will be the supervision of the stability of the financial markets as a whole.