European Banking Authority (EBA)

The European Banking Authority (EBA) aims to protect the financial stability, integrity, efficiency and orderly functioning of the banking sector in the EU. European banking authority, is mandated to assess risks and vulnerabilities in the EU banking sector. There are also some EBA regulations. 


What Are The Responsibilities of EBA?

EBA has many tasks and duties. However, it is its main task to contribute to the creation of the Single European Rulebook in banking by adopting the Binding Technical Standards (BTS) and Guidelines. The Single Rulebook aims to provide factors such as a single set of harmonized prudential rules for financial institutions across the EU and high protection to depositors, investors and consumers. In addition, the EBA is tasked with assessing risks for the EU banking sector through regular risk assessment reports. It has the following responsibilities:


  • Investigating alleged wrong or inadequate application of EU law,
  • Making decisions for financial institutions when emergencies occur,
  • Mediation in cross-border situations to resolve disputes between competent authorities,
  • Operating as an independent advisory body for the European Parliament, the Commission,
  • Promotes market fairness and transparency for consumer finance products in the domestic market.


Anti-Money Laundering and Countering the Financing of Terrorism

As part of its responsibility, The European Banking Authority works to prevent the European financial system from being used for money laundering and terrorist financing (ML/TF). EBA's studies on this issue are as follows:


  • Supporting its effective implementation by financial institutions in the EU to promote an effective risk-based approach to AML/CFT,
  • Making strong risk-based AML/CFT audits, supporting the development of a common understanding of ML/TF risks,
  • Promoting practical cooperation and information exchange between all relevant authorities in a manner that ensures that risks are addressed,
  • Identifying vulnerabilities in the authorities' approach to AML/CFT auditing,
  • Monitoring the implementation of the EU's AML/CFT policies and standards to take steps to reduce ML/TF risks before they happen.


Which Sectors Are Covered by EBA Regulations?

The European Banking Authority regulates and monitors the following institutions and other similar institutions in Europe:

  • Investment firms
  • eCommerce Merchants
  • Credit institutions
  • Banks
  • Lending institutions
  • Insurance undertakings




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