Page 19 - EBA 2015.1815 Annual report 2014 web 2

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2 0 1 4 a n n u a l r e p o r t
17
has entailed some strategic shifts of its work
and resources. As illustrated in Figure 1, un-
der the Banking Union, the EBA plays a role in
safeguarding the integrity and stability of the
EU banking sector and in holding the Single
Market together. This is crucial, especially
with respect to its two core functions:
ƒ
ƒ
Developing the Single Rulebook in banking
for the EU as a whole. This is fundamental
to the smooth functioning of the Banking
Union as constant supervision and resolu-
tion cannot be delivered without consistent
regulations. The Single Rulebook is funda-
mental to avoid fragmentation of the Single
Market between Banking Union members
and non-participating Member States.
ƒ
ƒ
Promoting the coordination and conver-
gence of supervisory and resolution prac-
tices. Work in this area — for example, on
the EBA Supervisory Handbook — supports
the SSM and SRM in delivering a consistent
approach across Member States, reduces
the risk of splits in the Single Market, and
enables authorities to share knowledge
and experience. The EBA will, in particular,
promote joint decisions between home and
host authorities through its mediation role
and participation in colleges.
Review by EU institutions
of the functioning of the
EBA
2014 was an important year for the ESAs. The
European Commission, the European Parlia-
ment, the Council of the EU as well as the Euro-
pean Court of Auditors all discussed, analysed
and reported on the functioning of the ESAs, in
the first comprehensive review of the ESAs and
the ESFS since their establishment in 2011.
The report by the Commission (
1
), published in
August 2014, was prepared in line with Article
81 of the ESAs Regulations which require the
Commission to publish a general report every
three years on the experience acquired as a
result of the operations of the ESAs. It was
preceded by a report by the European Parlia-
ment (
2
) published in February 2014, which built
on the findings of a study by the Mazars (
3
) con-
sulting group who were commissioned by the
Parliament. This was followed by the publica-
tion of a special report in July 2014 by the Eu-
(
1
) Commission’s report on the review of the ESFS:
(
2
) European Parliament’s report on the ESFS review:
(
3
) Mazars’ report:
ropean Court of Auditors on the performance
of the EBA during the financial crisis (
4
), and
finally, by the adoption by the Economic and Fi-
nancial Affairs Council (ECOFIN) of the conclu-
sions on the ESFS review (
5
) in November 2014.
All of the institutions concluded that despite
difficult circumstances, the EBA had quickly
established a well-functioning organisation
and had made significant progress towards be-
ing recognised as an Authority in its own right.
The EU institutions positively assessed the
EBA’s performance against its broad range
of tasks, in particular its significant contribu-
tion to the development of the Single Rulebook
across the Single Market. They recognised this
had been achieved in the face of significant
budgetary and human resources constraints
as well as a constant increase in number of
mandates and tasks attributed to the EBA by
the EU legislators.
The reviews by the EU institutions provided
some recommendations to improve the EBA’s
effectiveness and efficiency, in particular for
its role in supervisory convergence and con-
sumer protection, as well as enhancement of
its internal governance processes. They also
(
4
) European Court of Auditors’ report on performance
of EBA during the financial crisis:
(
5
) ECOFIN Council conclusions on the ESFS review: