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THE EBA AT A GLANCE

5

THE ROLE OF THE EBA

COMMON RULES UNDERPINNING THE EU SINGLE MARKET IN BANKING

The main task of the EBA is to contribute to the cre-

ation of a single market for the EU banking sector. The

authority is in charge of developing the common regula-

tory framework which is applicable to all banking insti-

tutions and investment firms across the EU in the same

manner: the EU single rulebook on banking.

The single rulebook

This set of rules forms the regulatory infrastructure

underpinning a single market in banking which is con-

sistent across the EU. The single rulebook arises out

of the legislative framework proposed by the European

Commission. The EBA builds on it by developing tech-

nical standards (TSs), guidelines and recommendations

addressed to banking institutions and EU supervisors.

Furthermore, the EBA has established a question and

answer (Q&A) tool, which clarifies questions from stake-

holders and concerned parties in relation to the practi-

cal application of the regulatory framework. Together, all

these EBA products promote a truly unified application

of EU legislation.

The single rulebook applies throughout the EU and it

ensures that the core principles of the Basel interna-

tional standards for banking are applied in all EU Mem-

ber States in a uniformmanner. It also closes regulatory

loopholes and contributes to the more effective func-

tioning of the internal market.

The rules in the single rulebook remove a large number

of national options and discretions, and allow Member

States to apply different requirements only where these

are justified through a process which ensures input

from EU bodies including the EBA.