ESRB Warnings and Recommendations

ESRB Warnings

The ESRB issues warnings on vulnerabilities in the European Union when significant systemic risks to financial stability are identified and when it is necessary to flag such risks. Warnings can be addressed to the European Union as a whole or to Member States, the European supervisory authorities or national authorities. The ESRB decides, on a case-by-case basis, whether a warning should be made public, bearing in mind that disclosure can help foster compliance. The ESRB will then monitor if, and to what extent, the systemic risk is addressed. Where appropriate, the ESRB will consider issuing a recommendation.

Warnings

ESRB Recommendations

The ESRB issues recommendations for remedial action when significant systemic risks are identified and when action is necessary to address these risks. Recommendations can be addressed to the EU as a whole or to Member States, the European Commission, the European supervisory authorities or national authorities. The ESRB decides, on a case-by-case basis, whether a recommendation should be made public, bearing in mind that disclosure can help to foster compliance. The ESRB will then monitor if, and to what extent, the systemic risk is addressed. It also monitors compliance with its recommendations via an “act or explain” mechanism. Further details are available in the Handbook on the assessment of compliance with ESRB recommendations.

Recommendations