Areas of Union competence deriving from the Treaty (Articles 26 and 114 of the Treaty on the Functioning of the European Union) Article 26 ‘1. The Union shall adopt measures with the aim of establishing or ensuring the functioning of the internal market, in accordance with the relevant provisions of the Treaties. 2. The internal market shall comprise an area without internal frontiers in which the free movement of goods, persons, services and capital is ensured in accordance with the provisions of the Treaties. 3. The Council, on a proposal from the Commission, shall determine the guidelines and conditions necessary to ensure balanced progress in all the sectors concerned.’ Article 114 ‘1. Save where otherwise provided in the Treaties, the following provisions shall apply for the achievement of the objectives set out in Article 26. The European Parliament and the Council shall, acting in accordance with the ordinary legislative procedure and after consulting the Economic and Social Committee, adopt the measures for the approximation of the provisions laid down by law, regulation or administrative action in Member States which have as their object the establishment and functioning of the internal market.’

Competences of the Authority (Regulation (EU) No 1093/2010 of the European Parliament and of the Council) Objectives (a) Improving the functioning of the internal market, including, in particular, a sound, effective and consistent level of regulation and supervision; (b) ensuring the integrity, transparency, efficiency and orderly functioning of financial markets; (c) strengthening international supervisory coordination; (d) preventing regulatory arbitrage and promoting equal conditions of competition; (e) ensuring the taking of credit and other risks are appropriately regulated and supervised; (f) enhancing customer protection. Tasks (a) To contribute to the establishment of high-quality common regulatory and supervisory standards and practices; (b) to contribute to the consistent application of legally binding Union acts; (c) to stimulate and facilitate the delegation of tasks and responsibilities among competent authorities; (d) to cooperate closely with the ESRB (1); (e) to organise and conduct peer review analyses of competent authorities; (f) to monitor and assess market developments in the area of its competence; (g) to undertake economic analyses of markets to inform the discharge of the Authority’s functions; (h) to foster depositor and investor protection; (i) to contribute to the consistent and coherent functioning of colleges of supervisors, the monitoring, assessment and measurement of systemic risk, the development and coordination of recovery and resolution plans, providing a high level of protection to depositors and investors throughout the Union and developing methods for the resolution of failing financial institutions and an assessment of the need for appropriate financing instruments; (j) to fulfil any other specific tasks set out in this Regulation or in other legislative acts; (k) to publish on its website, and to update regularly, information relating to its field of activities; (l) to take over, as appropriate, all existing and ongoing tasks from the Committee of European Banking Supervisors (CEBS).

Governance Board of Supervisors Composed of the Chairperson, one representative per Member State (head of NSA (2)), Commission, ECB (3), ESRB, EIOPA (4) and ESMA (5). Management Board Composed of the Chairperson and six other members of the Board of Supervisors. Chairperson Appointed by Board of Supervisors. Executive Director Appointed by Board of Supervisors. Board of Appeal Joint body of the three ESAs. External audit European Court of Auditors. Discharge authority European Parliament.

Resources made available to the Authority in 2012 (2011) 2012 Budget 20,7 (12,7) million euro Including: European Union subsidy: 8,3 (5,1) million euro Contributions from Member States: 12,1 (7,4) million euro Contributions from observers: 0,3 (0,2) million euro Staff as at 31 December 2012 68 temporary staff (40) 12 contract staff (6) 14 Seconded National Experts (5)

Products and services in 2012 — Public consultations on 23 draft Regulatory and Implementing Technical Standards, of which 16 on capital/own funds. — Submission to the Commission of the first draft Regulatory Technical Standards on capital requirements for central counterparties under European Market Infrastructure Regulation. — Issuance of six Guidelines, four Discussion Papers and 14 Consultation Papers. — Provision of seven Opinions addressed to the Commission, European Parliament and Council, three comment letters on accounting issues to the IASB/IFRS Foundation and one comment letter on auditing issues to the IAASB. — Follow-up to the EBA’S July 2011 EU-wide stress test Recommendation and EBA’s December 2011 Recapitalisation Recommendation with implementation to be done by 30 June 2012 (monitoring of banks’ capital plans, publication of individual data on capital positions of 61 banks). — Work in relation to the colleges of supervisors focusing on improving the consistency of supervisory practices, better coordination of activities, and the articulation of joint decisions on institution-specific prudential requirements, with specific focus on the 40 largest EU cross-border banks. — Participation in 116 meetings and activities of colleges. — Development of the EBA Crisis Management Manual for managing emergency situations, addressing information exchange within the colleges and with the EBA in emergency situations. — Development of the Good Practices paper on consistency in the content and articulation of joint decisions. — Issuance of a number of expert reports (e.g. report on a review of the prudential framework for SME lending, report on Basel III/CRDIV monitoring exercise, report on the follow-up review aimed at assessing the disclosures banks made in response to the Pillar 3 requirements set out in the Capital Requirements Directive, report on the functioning of colleges and fulfilment of action plans for colleges, etc.). — Performance of risk analysis, assessment and monitoring, and presenting risk reports to a wide range of stakeholders (including annual report to the EU parliament, semi-annual and quarterly updates and reports, and weekly overview reporting on liquidity and funding conditions for European banks), strengthening risk assessment and analysis infrastructure, including exploration of internal and external data. — Providing input and contribution to the process of the review of the European System of Financial Supervision in the context of the Article 81 of the EBA Regulation, jointly with ESMA and EIOPA (provision of quantitative and qualitative data and self-assessment report to the Commission). — Contribution to the EU Financial Sector Assessment Program of the International Monetary Fund. — Work related to EURIBOR and benchmark-related issues, performed jointly with ESMA, including issuance of recommendations to the Euribor-EBF and national authorities and work on principles for benchmark setting processes. — Conduct of surveys of national competent authorities with regard to national regulations on professional indemnity insurance, and with regard to responsible lending and treatment of borrowers in payment difficulties, publication of the Consumer Trends Report 2012. — Organisation of the EBA Consumer Protection Day in October 2012. — Creation of the Standing Committee on Consumer Protection and Financial Innovation (SCConFin) and its subgroups working on responsible lending and arrears handling; exchange traded funds; and contracts for difference. — Provision and coordination of 13 seminars to staff from EBA and national supervisory authorities. — Establishment of a set of key performance indicators for the finance area, reported to the EBA’s Management Board on a regular basis. — Further extension of an integrated e-HR system (Allegro) to facilitate an efficient and transparent working environment. — 11 meetings of Board of Supervisors (seven physical meetings, four teleconferences), eight meetings of Management Board (six physical meetings, two teleconferences). — Approximately 180 meetings held by EBA Internal Committees/Groups/Task forces/Panels.