Financial services policy and financial stability

EU financial services policy covers aspects as wide-ranging as:

• creating a more integrated capital market in the EU and a more diversified financial system (capital markets union);
• regulating the European Central Bank’s central supervision of the larger banks in the euro area, along with the orderly resolution of failing banks (banking union);
• setting up supervisory mechanisms and prudential, governance and transparency requirements for banks, improving protection for depositors and regulating bank failures;
• setting up rules governing the functioning of market infrastructure (e.g. trading venues, central clearing houses);
• improving the EU single market for retail financial services and payments, and making it work better for consumers and investors;
• establishing rules to facilitate the activities of insurance companies and pension funds across the EU, ensure that they manage risks and can survive in difficult times, and protect policyholders;
• strengthening the governance of financial instruments, trade in securities and investment funds and rules making post-trade services safer and more efficient;
• establishing rules to strengthen the quality of auditing practices and company reporting;
• establishing rules to boost the role of finance in achieving a greener and more sustainable economy (sustainable finance);
• improving the efficiency of the financial system by incorporating the use of new financial technologies (fintech);
• fighting money laundering and terrorist financing.

The purpose of EU financial services policy is to deliver stable, secure and efficient financial markets operating in an environment that:

• ensures financial stability;
• protects consumers;
• promotes market integrity;
• supports investment, growth and jobs.

SEE ALSO

• Consumer protection
• European Central Bank (ECB)
• Banking union
• Fight against terrorism
• Internal market
• Money laundering
• Single resolution mechanism
• Single supervisory mechanism
• Better regulated and transparent financial markets (summary)
• Capital Markets Union Action Plan (summary)
• Criminal sanctions for market abuse (summary)
• Deposit guarantee schemes (summary)
• Failing banks and investment firms: rules and procedures (summary)
• Improving securities settlement in the EU (summary)
• Insurance and reinsurance (summary)
• Markets in financial instruments regulation (summary)
• The European Central Bank’s role in supervising banks (summary)
• Powers of the ECB to impose sanctions (summary)
• Preventing abuse of the financial system for money laundering and terrorism purposes (summary)
• Revised rules for payment services in the EU (summary)
• Banking and financial services (European Commission).