The European Banking Authority

Abstract

This chapter studies the European Banking Authority (EBA), a decentralized agency tasked with specific microprudential responsibilities in the EU banking sector. By examining the EBA’s institutional and legal background, the chapter first explains the paradigm shift from coordination to centralization in governance and, consequently, the transition from committees to agencies. It then proceeds with the analysis of EBA’s internal governance framework, drawing evidence from founding acts, official documents and policy papers. Special consideration is given to criticism related to the political neutrality of EBA’s executive organs, where national interests were found to dominate. In this regard, the chapter determines whether EBA is indeed subject to “power struggles” and, if so, how they are mitigated and precluded from influencing policy outcomes.