The EBA was established on January 1, 2011 with headquarters in London United Kingdom, to take over all the prevailing responsibilities of the Committee of European Banking Supervisors (CEBS). The main objectives of the EBA are to maintain financial stability in EU and ensure that the banking sector functions in an efficient manner with integrity. It contributes to the creation of European Single Rulebook in banking through adoption of binding Technical Standards (BTS) to provide guidelines and rules that are to be followed by financial institutions in the European Union.
The EBA also it assess risks and weaknesses in the banking sector and also helps in convergence of supervisory practices. It is given the supreme power over national regulators when they fail to properly regulate their banks. EBA has issued the standardized framework for reporting, Common Reporting (COREP), for the Capital Requirements Directive reporting and has been adopted by almost 30 European countries.
Other tasks of the EBA are as follows:
To investigate incorrect or insufficient use of EU law by national authorities.
To take decisions during emergency situations for authorities or financial institutions.
To mediate and resolve disagreements between cross border
To act as an independent advisory body to European Parliament or the Commission.
To promote transparency simplicity and fairness consumer financial products/services market.