ESRB and ESFS

The European Systemic Risk Board (ESRB) was established by Regulation (EU) No. 1092/2010 of the European Parliament and of the Council of 24 November 2010on European Union macro-prudential oversight of the financial system and establishing a European Systemic Risk Board. Together with three pan-European sectoral supervisory authorities (the EBA, the ESMA and the EIOPA), their Joint Committee and national supervisors it makes up the European System of Financial Supervision (ESFS), the purpose of which is to ensure the supervision of the EU’s financial system.

Within the ESFS, the ESRB is an independent body responsible for conducting macroprudential oversight of the financial system in the EU. Unlike the European supervisory authorities, the ESRB focuses on the identification of systemic risks and on macroprudential policy, with the aim of safeguarding the stability of the European financial system as a whole. If it identifies increased risks of a systemic nature, the ESRB can issue warnings and recommendations to mitigate those risks.

The structure of the ESRB is as follows:

  • General Board
  • Steering Committee
  • Advisory Scientific Committee (ASC)
  • Advisory Technical Committee (ATC)
  • Secretariat

The President of the ECB will be the Chair of the ESRB for the first five years of its existence.

The General Board is the only decision-making body of the ESRB. Its inaugural meeting was held on 20 January 2011. Ordinary plenary meetings of the General Board are planned to be held four times a year. The General Board is a different body from the ECB General Council.

The General Board consists of the following members with voting rights:

  • the President and the Vice-President of the European Central Bank (ECB)
  • the Governors of the national central banks of the Member States
  • one member of the European Commission
  • the Chairperson of the European Banking Authority (EBA)
  • the Chairperson of the European Insurance and Occupational Pensions Authority (EIOPA)
  • the Chairperson of the European Securities and Markets Authority (ESMA)
  • the Chair and the two Vice-Chairs of the Advisory Scientific Committee (ASC)
  • the Chair of the Advisory Technical Committee (ATC)
  • and the following members without voting rights:
  • one high-level representative per Member State of the competent national supervisory authorities (the respective high-level representatives shall rotate depending on the item discussed, unless the national supervisory authorities of a particular member State have agreed on a common representative)
  • the President of the Economic and Financial Committee (EFC)

The Steering Committee, which prepares the meetings of the General Board, also started up in January 2011. The Steering Committee consists of:

  • the Chair and first Vice-Chair of the ESRB
  • the Vice-President of the ECB
  • four other members of the General Board who are also members of the General Council of the ECB, elected by and from among the members of the General Board who are also members of the General Council of the ECB
  • a Member of the European Commission
  • the Chairperson of the European Banking Authority (EBA)
  • the Chairperson of the European Insurance and Occupational Pensions Authority (EIOPA)
  • the Chairperson of the European Securities and Markets Authority (ESMA)
  • the President of the EFC
  • the Chair of the Advisory Scientific Committee (ASC)
  • the Chair of the Advisory Technical Committee (ATC)

The Advisory Technical Committee (ATC) is another body of the ESRB. It brings together the same institutions as the General Board and provides advice and assistance on issues relevant to the work of the ESRB, in particular the regular review of financial stability conditions in the EU.

The other advisory committee, the Advisory Scientific Committee (ASC), which will incorporate analyses by academics into the ESRB’s activities, was established at the meeting of the ESRB General Board on 18 March 2011.

The Secretariat, which is ensured by the ECB, is responsible for day-to-day business of the ESRB. It provides analytical, statistical, administrative and logistical support to the ESRB. At the end of 2010 it had 22 permanent members of staff (including 11 seconded by NCBs).

CNB representatives are involved directly in the ESRB’s work. The CNB Governor and another board member are members of the General Board, and CNB experts participate in the Advisory Technical Committee (ATC) and its working groups.