Consultation on the EC Proposal for European Financial Supervision

The European Commission has adopted a Communication on Financial Supervision in Europe and has invited all interested parties to submit their reactions on the Communication before 15 July.

The financial supervision package proposed in this Communication involves two key elements.

– a European Systemic Risk Council (ESRC) to monitor and assess risks to the stability of the financial system as a whole (“macro-prudential supervision”).

– a European System of Financial Supervisors (ESFS) for the supervision of individual financial institutions (“micro-prudential supervision”), consisting of a network of national financial supervisors working in tandem with new European Supervisory Authorities, created by the transformation of existing Committees for the banking securities and insurance and occupational pensions sectors.

The Communication follows directly the recommendations of the de Larosière report.

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