Dáil Éireann Debate, Monday - 11 September 2017
102. Deputy Michael Healy-Rae asked the Minister for Finance if the European Banking Authority is responsible for supervising the work of national competent authorities (details supplied); and if he will make a statement on the matter. [36839/17]
View answerThe European Banking Authority (EBA) is an independent EU Authority which works to ensure effective and consistent prudential regulation and supervision across the European banking sector. Its overall objectives are to maintain financial stability in the EU and to safeguard the integrity, efficiency and orderly functioning of the banking sector.
The main task of the EBA is to contribute to the creation of the European Single Rulebook in banking whose objective is to provide a single set of harmonised prudential rules for financial institutions throughout the EU. The EBA also plays an important role in promoting convergence of supervisory practices and is mandated to assess risks and vulnerabilities in the EU banking sector.
The EBA does not have a role in supervising the work of the Central Bank of Ireland or the Financial Services Ombudsman. However, it does perform a number of important functions with respect to competent authorities, including:
Correct application and breach of EU law
The EBA has the power to investigate alleged breaches or non-applications of EU law, either upon request by one or more competent authorities or EU institutions or on its own initiative. The outcome of the EBA investigations into alleged breaches usually consists of recommendations addressed to the competent authority concerned.
Guidelines and recommendations
The EBA produces regulatory guidelines and recommendations with the purpose of providing guidance to banking institutions, investment firms and competent supervisory authorities on the application of EU regulations and directives. If a competent authority does not comply or does not intend to comply, it must inform the EBA of this and state reasons for non-compliance, as prescribed by the ‘comply or explain’ principle.
Mediation
The EBA has a role in settling disagreements between competent EU authorities in cross-border situations; that is in the supervision or resolution of those institutions that operate in more than one Member State. Upon the request of the competent authorities concerned, or on the EBA’s own initiative, the EBA will assist in reaching an agreement. If this cannot be achieved the EBA can then take binding decisions requiring that specific actions are taken, in order to ensure compliance with EU law.
