This framework provides a more consolidated and rational institutional design for linking the micro-prudential supervision of individual institutions with the supervision of linkages between institutions and within the broader system. However, as the ESAs were only established at the beginning of 2011, they are too young for us to judge their effectiveness.
Under the current framework, all supervisors in the Member States continue to be responsible for assuming their individual supervisory functions, but they have to report on their practices to the relevant authority. The ESAs’ regulations provide for a review of the new institutional arrangements by the European Commission in early 2014.