ESRB - the European Systemic Risk Board

As of 1 January 2011 and in relation to the new structure for financial supervision in the EU an European Systemic Risk Board (ESRB) has been established. ESRB is responsible for the macro-prudential surveillance of the EU financial system in order to prevent or reduce the systemic risks in the EU. Systemic risk is defined as the risk of disruption of the financial system with the potential to have serious negative consequences for the internal market and the real economy. Specifically, ESRB will be responsible for collecting and analyzing relevant information for the macro-prudential supervision in order to identify and prioritize systemic risks. If necessary ESRB will issue warnings or make recommendations for remedial action in response to the uncovered risks.