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European Systemic Risk Board

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European Systemic Risk Board



In the aftermath of the 2008 global financial crisis, the European Union introduced legislation to strengthen EU arrangements for the supervision of the financial sector. These were designed to restore confidence in the financial system and to prevent any risks that might destabilise the global financial system.


It establishes the European Systemic Risk Board (ESRB) as part of the new European System of Financial Supervision (ESFS), which also includes:

the supervisory authorities in the EU countries.

The new supervisory architecture also includes a regulation that gives the European Central Bank (ECB) certain specific tasks to support the ESRB.


Mandate, objectives andtasks

The ESRB is based in Frankfurt am Main (Germany). It is responsible for monitoring and analysing risk in the financial system as a whole (also known as macro-prudential oversight). To achieve this, the ESRB in particular:

identifies systemic risks and classifies them according to their priority;

issues warnings where systemic risks are deemed to be significant and makes them public if necessary;

recommends remedial action in response to risks identified;

can transmit a confidential warning and assessment to the Council when it considers that an emergency situation is likely to occur;

monitors the measures taken in response to warnings and recommendations;

coordinates with international financial organisations like the International Monetary Fund and the Financial Stability Board (FSB).


The ESRB has the following structure:

a General Board that ensures the performance of tasks by taking the necessary decisions;

a Steering Committee which assists in the decision-making process;

a Secretariat responsible for day-to-day business and providing support;

an Advisory Scientific Committee and an Advisory Technical Committee to provide advice and assistance.

The ESRB has a chair who represents the ESRB externally and two vice-chairs. The ECB provides analytical, statistical, logistical and administrative support to the ESRB by running the ESRB’s Secretariat.

Warnings and recommendations

In the event of significant systemic risks to its objective, the ESRB provides warnings and, where appropriate, issues recommendations for remedial action, including legislative initiatives. These warnings or recommendations are addressed in particular to:

the EU as a whole;

1 or more EU countries;

1 or more European supervisory authorities;

1 or more national supervisory authorities; or

the European Commission in respect of relevant EU legislation.

Addressees of recommendations must comply or provide an explanation for any inaction. If the ESRB decides that its recommendation has not been followed or that addressees have not provided adequate justification for their inaction, it confidentially informs the addressees, the Council and, where relevant, the European supervisory authority concerned.

The further evolution of the European surveillance system

As the financial crisis evolved and following the worsening sovereign debt crisis in the euro area in 2010-2011, the further integration of the euro area banking systems became necessary. This is why, based on the Commission’s roadmap for setting up a banking union, the European institutions created the following.

A Single Supervisory Mechanism (SSM), placing the ECB as the central supervisor for euro area banks (around 6,000 banks). Non-euro area countries may also decide to join.

A Single Resolution Mechanism (SRM), the objective of which is to ensure the orderly resolution of failing banks covered by the SSM without using taxpayers’ money.


From 16 December 2010.



Regulation (EU) No 1092/2010 of the European Parliament and of the Council of 24 November 2010 on European Union macro-prudential oversight of the financial system and establishing a European Systemic Risk Board



Entry into force

Deadline for transposition in the Member States

Official Journal

Regulation (EU) No 1092/2010



OJ L 331, 15.12.2010, pp. 1-11


Council Regulation (EU) No 1096/2010 of 17 November 2010 conferring specific tasks upon the European Central Bank concerning the functioning of the European Systemic Risk Board (OJ L 331, 15.12.2010, pp. 162-164)

Directive 2010/78/EU of the European Parliament and of the Council of 24 November 2010 amending Directives 98/26/EC, 2002/87/EC, 2003/6/EC, 2003/41/EC, 2003/71/EC, 2004/39/EC, 2004/109/EC, 2005/60/EC, 2006/48/EC, 2006/49/EC and 2009/65/EC in respect of the powers of the European Supervisory Authority (European Banking Authority), the European Supervisory Authority (European Insurance and Occupational Pensions Authority) and the European Supervisory Authority (European Securities and Markets Authority) (OJ L 331, 15.12.2010, pp. 120-161). See consolidated version

last update 26.10.2015