Finance
ECB Backs EU Plan to Centralise Financial Supervision
Published by Global Banking & Finance Review®
Posted on April 10, 2026
2 min readLast updated: April 10, 2026
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Published by Global Banking & Finance Review®
Posted on April 10, 2026
2 min readLast updated: April 10, 2026
Add as preferred source on GoogleThe European Central Bank has backed the European Commission’s proposal to centralise supervision of major cross‑border financial market players at ESMA, stressing the need for proper staffing, resources and a phased transition to bolster market integration and oversight.
BRUSSELS, April 10 (Reuters) - The European Central Bank on Friday endorsed the European Commission’s plan to better integrate EU capital markets through joint supervision, but cautioned the move needed to be adequately staffed and financed.
The push for financial market players to be supervised at an EU rather than national level is part of an attempt - led by France and Germany - to boost the bloc's competitiveness as it struggles with weak growth and fierce competition from the US and China.
The central bank's backing will send a signal of confidence to markets, as well as the governments of some smaller EU countries, such as Ireland and Luxembourg, that have not been enthusiastic about the plan.
In an opinion, the ECB said it was fully in favour of stronger EU‑level oversight of systemically important, cross‑border financial market players, including major trading venues, central counterparties, central securities depositories and crypto-asset service providers.
The Commission has proposed such oversight be moved from national authorities to the European Securities and Markets Authority (ESMA) in Paris.
"The ECB fully supports the Commission proposals, which constitute an ambitious step towards deeper integration of capital markets and financial market supervision within the Union," the ECB said in the opinion that is required by the EU legislative process, but is not binding for lawmakers.
The central bank said it should have a non-voting seat on the board of ESMA and that its expertise should be taken into account not just in relation to supervisory decisions, but also technical standards, guidelines and recommendations.
The ECB noted that ESMA needed to be given sufficient resources and staffing to take on the additional responsibilities and advised that the transition from national to EU-level supervision be sequenced to minimise disruption.
The Commission proposal will now be negotiated between EU governments and the European Parliament in a process that is likely to take months, before it becomes law.
(Reporting by Jan StrupczewskiEditing by Christina Fincher)
The ECB endorsed the European Commission’s plan to centralise supervision of EU capital markets under the European Securities and Markets Authority (ESMA).
The move seeks to boost the bloc's competitiveness and better integrate EU capital markets, especially against US and China competition.
The ECB stressed that ESMA should be adequately staffed and financed to handle expanded responsibilities, and the transition needs to be carefully sequenced.
Some smaller EU countries, such as Ireland and Luxembourg, have not been enthusiastic about the plan.
The proposal will be negotiated between EU governments and the European Parliament before potentially becoming law.
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