Three EU finance watchdogs begin operations

[News_Editor]

Three EU finance watchdogs begin operations

2011-01-04 04:42:27 GMT+7 (ICT)

BRUSSELS (BNO NEWS) -- The European Union on Monday informed that three new European Authorities for the supervision of financial activities began operations on January 1.

The three new EU watchdogs will supervise banks, markets and insurances and pensions respectively. The start of operations came a few days after the launch of the European Systemic Risk Board.

The board will monitor the entire financial sector, to identify potential problems which could contribute to a crisis in the future. It will work in close cooperation with the new European Supervisory Authorities.

The three new authorities were established following the crisis suffered last year which highlighted the limits and failings of the supervision system in Europe. The financial crisis showed that the coordination between national authorities was not optimal when transnational financial institutions faced problems.

The supervision bodies are the new apparatus of surveillance and supervision that will detect problems early and act in time in a coordinated and efficient way. This launch is considered by the EU as a turning point for the European financial sector.

These new authorities will work along others similar bodies around the world to ensure better global supervision. This effort is also intended to enhance consumer protection and to ensure that citizens would be not again the first in line affected by a crisis.

-- © BNO News All rights reserved 2011-01-04