The European Systemic Risk Board (ESRB) is responsible for supervision of stability within the financial system at the macro level, or oversight. The purpose of the oversight is to prevent emergence of systemic risks to the financial stability and mitigate their impact as well as support financial sector consideration of macro-economic developments. Representatives of the central banks work together on the Board with supervisors.
The European Systemic Risk Board and the European supervisory authorities exchange risk information necessary for performing their tasks. If the ESRB takes the view that significant risks related to the macro-prudential oversight of EU’s financial system have arisen, it can issue warnings and recommendations for corrective measures, as required. Warnings or recommendations can be of a general or specific nature. They can be directed at the European Union as a whole, to one or several member states, to one or several European supervisory authorities or to one or several national supervisory authorities.
The units of the ESRB are the general board, steering committee, secretariat, advisory scientific committee and advisory technical committee.
The ESRB operates out of Frankfurt.