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Eu­ro­pean Sys­temic Risk Board

The European Systemic Risk Board (ESRB) is responsible for macroprudential supervision within the European Union. At the end of 2011, the ESRB recommended that macroprudential authorities or bodies be established at the national level. Germany implemented this recommendation by creating the Financial Stability Committee.

The ESRB has the task of overseeing the entire financial system within the European Union. The ESRB contributes to containing systemic risks and preventing financial crises by means of its macroprudential suervision. It also contributes to the smooth functioning of the internal market, thereby ensuring that the financial sector is able to make a sustained contribution to economic growth. The Bundesbank and BaFin are represented on the ESRB, among others.

The ESRB can issue warnings or recommendations addressed in particular to the European Union as a whole, to EU member states, to European supervisory authorities (ESAs) or to national authorities. In 2011, for example, the ESRB recommended that member states designate an authority entrusted with the implementation of macroprudential policy (ESRB/2011/3). The Financial Stability Committee performs this function in Germany.

The ESRB monitors the implementation of recommended measures. Recipients inform the ESRB and the European Council of the actions they have taken. They also provide appropriate explanation for any inaction (“comply or explain” mechanism). Should the ESRB find that a recommendation has not been followed, or that any failure to act was unfounded, it will inform the European Council accordingly.

The General Board is the central decision-making body within the ESRB. Warnings and recommendations are approved with a two-thirds majority. Members of the General Board include the President and Vice-President of the ECB, the governors of the national central banks of all EU countries, the heads of the European supervisory authorities (EBA, EIOPA and ESMA), a high-level representative of each of the competent national supervisory authorities, a member of the European Commission, and the chair of the Economic and Financial Committee (EFC).

ESRB members are presidents of national central banks, heads of the European Supervisory Authorities, representatives of the EU Commission and the Economic and Financial Committee and 1 representative of each competent national supervisory authority enlarge image
Source:  Financial Stability Committee

ESRB recommendations that are relevant for Germany

Recommendation numberContentsApproval dateAddressee
ESRB/2021/10Medium-term vulnerabilities in the residential real estate sector2 December 2021Federal Ministry of Finance
ESRB/2020/12Identification of financial and non-financial entities by means of a legal entity identifier (LEI)24 September 2020BaFin
ESRB/2020/8Monitoring the financial stability implications of national measures in reaction to the Covid-19 pandemic and regular reporting to the ESRB27 May 2020Financial Stability Committee
and ESRB/2020/15
Restriction of distributions during the Covid-19 pandemic27 May 2020
18 December 2020

ESRB/2020/6Liquidity risks arising from margin calls during the Covid-19 pandemic8 May 2020BaFin
ESRB/2019/18Exchange and collection of information for macroprudential purposes on branches of credit institutions having their head office in another member state or in a third country26 September 2019Financial Stability Committee, BaFin
[amended in ESRB/2019/3]
Closing real estate data gaps
28 November 2016AFS
ESRB/2015/2Assessment of cross-border effects of and voluntary reciprocity for macroprudential policy measures15 December 2015Financial Stability Committee, BaFin, Bundesbank
ESRB/2015/1Recognising and setting countercyclical buffer rates for exposures to third countries11 December 2015BaFin
ESRB/2014/1Setting countercyclical buffer rates18 June 2014BaFin
ESRB/2013/1Definition and achievement of intermediate objectives of macro-prudential policy and assessment of required instruments as needed4 April 2013Financial Stability Committee
ESRB/2012/2Monitoring and assessment of funding risks and funding risk management20 December 2012BaFin
ESRB/2011/3Establishment of a macroprudential mandate of national authorities and creating legal bases22 December 2011German government
ESRB/2011/2Monitoring risks of US dollar denominated funding and ensuring the availability of appropriate contingency plans22 December 2011BaFin
ESRB/2011/1Information about and monitoring of foreign currency loans21 September 2011BaFin, German government