The establishment of the EBA, EIOPA and ESMA and the subsequent closer coordination of financial supervision is reasonable. Technical standards can minimise the distortion of competition and improve the quality of supervision. The authorities should, however, not be responsible for the application of EU supervisory rules. Besides, the EBA's role as arbitrator is not compatible with the activities of supervisory colleges. Finally, in emergency situations the ESA do not have sufficient power to be effective.