1 Abstract This master thesis deals with the arrangement of the supervision of the financial system in the European Union. Its content and structure is strongly tied with two principal supervisory pillars - European System of Financial Supervision (ESFS) and Single Supervisory Mechanism (SSM). The first chapter starts with the historical background of the European financial supervision and proceeds to the recent global Great recession which motivated the reforms that led to the current state of the supervisory structure. The operation of the ESFS and SSM is thoroughly explained in chapters two and three respectively, moreover I cover their interaction with national supervisory authorities and special emphasis is put on the role of the Czech National Bank. Several controversial issues are also reflected in the course of the thesis, ie. rather regulatory than supervisory role of the European supervisory authorities which contradicts the initially declared intentions, their low operability or quite illusory legislative demand of extensive independence of national representatives when they stand for their respective home authorities in the European institutions. The emphasis on the Czech Republic is evident from the sub-chapter regarding the potential entry into the close cooperation with the Single Supervisory...

The thesis discusses the supervision and regulation of the financial sector in the European Union with a particular focus on the banking market . The aim is to answer the research question , what are the main reasons for the introduction of the banking union in the European Union and what this concept means in practice for the Member States . The first chapter presents general reasons of financial market regulation and puts them into the context of the transformation of a European framework for financial supervision. The second part delas with the central theme of this work , a banking union as an important milestone in the process of european economic and political integration. It explains the factors leading to increased attention devoted to the regulation of banking market. The last chapter provides an analysis of the impact on the Member States of the European Union. Basic consequences arising from the introduction of banking union are analyzed on the case of the Czech Republic. The conclusion brings in attention the factors that are currently on the reform of European banking regulation most emphasized.

Avec l’annonce de la création d’une Union bancaire européenne, l’évolution du cadre institutionnel de la régulation prudentielle est actuellement au coeur des débats politiques. Le projet de réforme prévoit la dévolution d’une importante partie du contrôle prudentiel des entreprises financières à la Banque centrale européenne. Les conflits d’intérêts potentiels susceptibles d’être générés dans le cadre de la détermination de la politique monétaire et de la mise en oeuvre du contrôle prudentiel ont souvent été mis en exergue par les détracteurs du modèle de régulation intégré aux institutions d’émission. Cependant, les influences réciproques ainsi que la complémentarité tenant à l’exercice des missions de stabilité monétaire et de stabilité financière par le banquier central pourraient tendre à justifier l’adoption de telles mesures. La concentration des pouvoirs monétaires et prudentiels dans le giron des banques centrales impliquerait néanmoins pour ces dernières de répondre au principe de la légitimité démocratique, cela tout en conservant un certain degré d’indépendance à l’endroit du pouvoir politique. La conciliation de ces deux exigences semblerait nécessaire dans l’hypothèse où les banques centrales se verraient amenées à exercer un rôle croissant au sein de la sphère financière. Plus largement, c’est peut-être dans la recherche de cet équilibre que réside le secret de la conception d’un cadre institutionnel optimal dans le domaine de la régulation monétaire et financière. Les insuffisances dénoncées des modèles de supervision pourraient-elles ainsi se voir pallier par l’institution d’un Système mondial de banques centrales en charge du contrôle prudentiel ? / With the announcement of the creation of an European banking union, the evolution of institutionnal framework of prudential supervision is currently at the center of political debates. The draft reform provides for the devolution of a significant part of prudential supervision of financial enterprises to the European central bank. The potential conflicts of interest which might be generated in the framework of the determination of monetary policy and the implementation of prudential supervision have often been underlined by critics of the integrated regulatory model within issuing institutions. However, both reciprocal influences and complementarity in the exercice of the missions of monetary stability and financial stability by the central banker might tend to justify the adoption of such measures. The concentration of monetary and prudential powers within central banks would imply, though, for those latter to satisfy the principle of democratic legitimacy, this while keeping some degree of independence from the political power. The conciliation between these two requirements would seem necessary assuming that central banks would be set to exercise an increasingly important role within the financial sphere. More extensively, perhaps the secret of the design of an optimal institutionnal framework in the area of financial and monetary supervision lies in the search for this balance. Might insufficiencies highlighted in supervisory models be overcome by setting up a world system of central banks in charge of prudential supervision?

De nos jours, la coopération entre les superviseurs financiers dans l’Union européenne constitue une nécessité apparente. En effet, l’harmonisation progressive des législations des Etats membres, la mise en place du passeport européen pour faciliter la libre circulation des acteurs au sein de l’Union, la compétence nationale fondée sur le principe du pays d’origine, ainsi que la reconnaissance mutuelle des agréments et des contrôles ont rendu nécessaire la coopération entre les superviseurs financiers des Etats membres. Cette nécessité constitue une conséquence logique de l’intégration financière. D'une part, l'existence de règles communes exige une approche cohérente dans leur mise en oeuvre à travers de l'Union européenne. D'autre part, la portée croissante d'activités transfrontalières, ensemble avec l’émergence de grands établissements financiers prestant des services dans plusieurs secteurs d’activité, exige la coopération étroite entre les superviseurs financiers. En effet, dans un contexte transfrontalier et intersectoriel, la coopération constitue le principal outil de surveillance des autorités de contrôle financier. Ce processus est en plein mutation depuis l’avènement de la crise financière. Ainsi, la coopération est renforcée et centralisée à l’échelle de l’Union depuis la mise en place des Autorités européennes de surveillance. En outre, la centralisation de la supervision dans le secteur bancaire au niveau européen ne supprime pas la nécessité de coopération, en particulier en raison de l’expertise des autorités nationales, de leur connaissance des marchés bancaires nationaux, régionaux et locaux, des ressources importantes dont elles disposent déjà et de considérations géographiques et linguistiques. / Nowadays, the cooperation among the financial supervisors in the European Union is a visible necessity. The progressive harmonisation of the legislations of the Member states, the establishment of the European passport in order to facilitate the free movement of actors within the Union, the national competence based on the principle of the country of origin, as well as the mutual recognition of the authorisation procedure and of the controls made necessary the cooperation among financial supervisors in Europe. This necessity is a logical consequence of the financial integration. First, the existence of common rules requires a coherent approach in their implementation thought the European Union. Second, the increasing number of cross-border activities, as well as the emergence of big financial institutions active in several business sectors requires a close relationship between financial supervisors. In a cross-border and intersectoral context the cooperation becomes the main tool of supervision of the financial authorities. This process is in height transformation since the advent of the financial crisis. The cooperation is strengthened and centralised on European level since the establishment of the European Supervisory Authorities. In addition, the centralisation of the supervision in the banking sector at European level does not eliminate the necessity of cooperation, due in particular to the expertise of national authorities, to their knowledge of national, regional and local banking markets, their significant existing resources and to locational and language considerations.

The purpose of the presented thesis is to analyse the developments of the regulatory framework relating to the taking up and pursuit of the business of credit institutions within the European Union (EU). One of the main reasons for this research is the development of the regulatory framework in the aftermath of the financial crises which showed its destructive effects after the financial collapse of Lehman Brothers in September 2008. The EU regulatory respond to the crisis led to the establishment of the new European System of Financial Supervision (ESFS). The new regulatory framework affects not only the role of the national standard setters and the work of national supervisory authorities but also rights and duties of all regulated and supervised entities of the financial market. The thesis is composed of five chapters. Each of them is dealing with the development of the regulatory framework concerning technical instruments of prudential supervision in the area of credit institutions. The introductory Chapter One defines instruments of prudential supervision which are applied by credit institutions and their supervisors under the present so- called Capital requirement directives (CRD). Chapter Two describes the evolution of the process of harmonisation in the area of credit institutions. The...