Institutional change of the supervisory system of the EU financial market

The global financial crisis caused public discussions on the efficiency of the supervisory institutions of the EU financial sector. This paper identified the changes of the EU financial supervisory system and evaluated the directions for improvement of the reform. The logical method is used for making a substantiated generalization of the collected facts and formulating transitional as well as final conclusions of the research. Seeking to evaluate the existing banking regulation in Lithuania and the EU, the method of systematic analysis is applied. The results of the study show that the recent integrated supervision models failed to quickly and efficiently respond to the financial crisis. Ordinary European System of Financial Supervision (ESFA) is insufficient to prevent splitting of the European financial market