This implies that we must clearly define the responsibilities of both banking supervisors and the ESAs in order to avoid a clash of competencies. Under the proposed regulation, the ESAs will perform operational oversight functions for critical ICT third-party service providers, with the EBA designated as the lead overseer and in close cooperation with EIOPA and ESMA.
This includes on-site inspections, ongoing oversight and recommendations for action. By contrast, banking supervisors are to stick to their mandate of supervising financial institutions. Supervision of critical ICT third-party service providers therefore falls only indirectly, if that, within the scope of banking supervisors. Second, closer cooperation among authorities is needed.