esFs

ESFS stands for the European System of Financial Supervisors. It is the European Union framework established to coordinate and integrate financial supervision across member states, with the aim of ensuring the stability of the financial system, protecting consumers, and creating a consistent application of EU financial regulation.

The ESFS brings together national supervisory authorities from each EU member state and three European-level supervisory authorities plus a central macroprudential body. The European Supervisory Authorities are the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA), and the European Insurance and Occupational Pensions Authority (EIOPA). The European Systemic Risk Board (ESRB) serves as the central macroprudential body within the system. National authorities continue to supervise financial institutions within their borders, while the ESAs and ESRB coordinate cross-border supervision, set technical standards, issue guidelines, and monitor systemic risks.

Established in the wake of the 2008–2009 financial crisis, the ESFS was created to address fragmented regulation and supervision across the EU and to strengthen the resilience of the financial sector. The framework supports the development of a unified rulebook, promotes consistency in application of EU law, and facilitates cooperation among authorities in areas such as stress testing, risk assessment, and crisis management. Over time, the ESFS has evolved through regulatory reforms to enhance coordination, information sharing, and the supervisory response to cross-border financial activities.

See also: financial regulation in the European Union, European Systemic Risk Board, European Supervisory Authorities, macroprudential policy.