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 recommendations or warnings that are relevant for Germany
|Number of the Recommendation/Warning||Contents||Approval date||Addressee|
Warning on vulnerabilities in the Union financial system
|22 September 2022||Financial Stability Committee, BaFin, European Supervisory Authorities, private sector,|
||Recommendation on a pan-European systemic cyber incident coordination framework for relevant authorities||2 December 2021||BaFin|
|ESRB/2021/10 [PDF, 399KB]||Recommendation on medium-term vulnerabilities in the residential real estate sector in Germany||2 December 2021||German Government|
||Recommendation on reform of money market funds||2 December 2021||Commission|
|ESRB/2020/12 [PDF, 546KB]||Recommendation on identifying legal entities||24 September 2020||Commission, BaFin, EBA, ESMA, EIOPA, SRB|
|ESRB/2020/8 [PDF, 522KB]||Recommendation on monitoring the financial stability implications of debt moratoria, and public guarantee schemes and other measures of a fiscal nature taken to protect the real economy in response to the COVID‐19 pandemic||27 May 2020||Financial Stability Committee|
and ESRB/2020/15 [PDF, 515KB]
|Recommendation on restriction of distributions during the COVID-19 pandemic||27 May 2020|
15 December 2020
|ESRB/2020/6 [PDF, 547KB]||Recommendation on liquidity risks arising from margin calls||25 May 2020||BaFin|
|ESRB/2019/18 [PDF, 558KB]||Recommendation on exchange and collection of information for macroprudential purposes on branches of credit institutions having their head office in another Member State or in a third country||26 September 2019||Financial Stability Committee, BaFin|
[amended in ESRB/2019/3 [PDF, 735KB] ]
|Recommendation on closing real estate data gaps|
|31 October 2016||AFS|
|ESRB/2015/2 [PDF, 189KB]||Recommendation on the assessment of cross-border effects of and voluntary reciprocity for macroprudential policy measures||15 December 2015||Financial Stability Committee, BaFin, Bundesbank|
|ESRB/2015/1 [PDF, 520KB]||Recommendation on recognising and setting countercyclical buffer rates for exposures to third countries||11 December 2015||BaFin|
|ESRB/2014/1 [PDF, 498KB]||Recommendation on guidance for setting countercyclical buffer rates||18 June 2014||BaFin|
|ESRB/2013/1 [PDF, 937KB]||Recommendation on intermediate objectives and instruments of macro-prudential policy||4 April 2013||Financial Stability Committee|
|ESRB/2012/2 [PDF, 9MB]||Recommendation on funding of credit institutions||20 December 2012||BaFin|
|ESRB/2011/3 [PDF, 723KB]||Recommendation on the macro-prudential mandate of national authorities||22 December 2011||German government|
|ESRB/2011/2 [PDF, 2MB]||Recommendation on US dollar denominated funding of credit institutions||22 December 2011||BaFin|
|ESRB/2011/1 [PDF, 2MB]||Recommendation on lending in foreign currencies||21 September 2011||BaFin, German government|