European System of Financial Supervision

The European System of Financial Supervision (ESFS) is a framework that oversees and coordinates the regulation of financial institutions across the European Union. It aims to ensure financial stability, protect consumers, and promote a well-functioning financial market. The ESFS includes several authorities, such as the European Supervisory Authorities (ESAs) for banking, securities, and insurance sectors, which work together with national regulators to monitor risks, enforce rules, and respond to crises. This system helps create a consistent and secure financial environment across EU member states, fostering trust among consumers and businesses.