WHAT IS THE AIM OF THE REGULATION?
- Regulation (EU) No 1093/2010 sets up the European Banking Authority (EBA), a European Union (EU) agency that works to ensure effective and consistent prudential regulation and supervision across the European banking sector.
- The EBA’s overall objectives are to maintain financial stability in the EU and to safeguard the integrity, efficiency and orderly functioning of the banking sector.
KEY POINTS
Consistent application of EU law
The EBA:
Stress tests
The EBA has a prominent role in the EU-wide stress test exercise that examines banks’ resilience with regard to adverse market developments and any systemic risks in the EU financial system:
- it initiates and coordinates stress tests in the EU with the national authorities responsible for supervising banks;
- in cooperation with the European Systemic Risk Board (ESRB), the European Central Bank and the Commission, the EBA defines a common methodology for each edition of the stress test;
- it also monitors and assesses market and credit trends.
Breaches of EU law
- The EBA has the power to investigate the alleged incorrect application of EU banking and financial legislation by a national supervisor (in particular when it fails to ensure that a bank complies with the requirements laid down in that legislation).
- The EBA may address a recommendation to the relevant national supervisor. If the supervisor does not comply with this, the Commission can issue a formal opinion taking into account the EBA’s recommendation.
- If a national supervisor persists in not complying with the law, the EBA can adopt decisions directly addressed to the bank. This power can only be used in exceptional circumstances.
- Regulation (EU) 2024/1620 assigns responsibility for immediate action in cases of breaches of AML/CFT EU law to AMLA, making the EBA’s former direct intervention powers in this field obsolete.
European financial supervision
The EBA is part of the European System of Financial Supervision created in 2010, which, in addition to the ESRB, comprises two other supervisory organisations:
Amending Regulation (EU) 2019/2175 bolsters the mandates, governance and funding of the three European supervisory authorities and, in regard to the EBA:
- strengthens its powers in the area of consumer protection by promoting greater transparency and clarity regarding financial products and services by:
- monitoring trends in retail financial products’ costs and charges,
- developing retail risk indicators for consumers;
- increases its resources to enable it to carry out its new tasks.
Regulation (EU) 2024/1620 transfers the AML/CFT tasks (including the collection of information from national authorities, the development of supervisory standards, the carrying out of risk assessments and international cooperation on cross-border cases) to AMLA. The EBA now retains its role in consumer protection and prudential supervision but no longer has overall EU responsibility for AML/CFT.
Anti-money laundering / counter-terrorist financing central database
EBA manages a central EU database on money laundering and terrorist financing weaknesses, as required by Article 9a of Regulation (EU) No 1093/2010 and detailed in Commission Delegated Regulation (EU) 2024/595:
- it records material weaknesses in financial sector operators’ compliance with AML/CFT rules, based on criteria such as gravity, repetition or impact on stability;
- national authorities (prudential, AML/CFT, conduct, resolution, deposit guarantee schemes), the European Central Bank and the Single Resolution Board must report information on operators, weaknesses and corrective measures without undue delay;
- the EBA analyses and shares this information confidentially with the competent authorities, in cooperation with the European Securities and Markets Authority and the European Insurance and Occupational Pensions Authority, under strict secrecy and EU data protection rules;
- reports are submitted in English, with summaries if supporting documents are in other languages.
This tool strengthens early detection of risks and ensures consistent monitoring across the EU.
Payment services
In relation to payments services in the EU, amending Directive (EU) 2015/2366 strengthens the EBA’s role (see summary) and requires it to:
- develop a publicly accessible central register of authorised payment institutions, which must be kept up to date by the national authorities;
- assist in resolving disputes between national authorities;
- develop and issue guidelines and draft regulatory technical standards on:
- strong customer authentication and secure communication channels with which all payment service providers must comply,
- cooperation and the exchange of information between supervisory authorities.
Headquarters
Under amending Regulation (EU) 2018/1717, in the context of the United Kingdom’s withdrawal from the EU, the headquarters of the EBA was relocated from London to Paris as of 30 March 2019.
FROM WHEN DOES THE REGULATION APPLY?
- Regulation (EU) No 1093/2010 has applied since 1 January 2011.
- Amending Directive (EU) 2015/2366 has applied since 12 January 2016 and had to become law in the Member States by 13 January 2018.
- Amending Regulation (EU) 2019/2175 has applied since 1 January 2020.
BACKGROUND
For further information, see:
MAIN DOCUMENT
Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, pp. 12–47).
Successive amendments to Regulation (EU) No 1093/2010 have been incorporated into the original text. This consolidated version is of documentary value only.
RELATED DOCUMENTS
Regulation (EU) 2024/1620 of the European Parliament and of the Council of 31 May 2024 establishing the Authority for Anti-Money Laundering and Countering the Financing of Terrorism and amending Regulations (EU) No 1093/2010, (EU) No 1094/2010 and (EU) No 1095/2010 (OJ L, 2024/1620, 19.6.2024).
Commission Delegated Regulation (EU) 2024/595 of 9 November 2023 supplementing Regulation (EU) No 1093/2010 of the European Parliament and of the Council with regard to regulatory technical standards specifying the materiality of weaknesses, the type of information collected, the practical implementation of the information collection and the analysis and dissemination of the information contained in the Anti-money laundering and counter terrorist financing (AML/CFT) central database referred to in Article 9a(2) of that Regulation (OJ L, 2024/595, 16.2.2024).
Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, pp. 349–496).
See consolidated version.
Council Regulation (EU) No 1096/2010 of 17 November 2010 conferring specific tasks upon the European Central Bank concerning the functioning of the European Systemic Risk Board (OJ L 331, 15.12.2010, pp. 162–164).
