What is the European Systemic Risk Board?

The European Systemic Risk Board (ESRB) is an independent body that ensures financial stability in the European Union. It includes representatives from the European Central Bank (ECB), supervisors from EU member states, and the European Commission which proposes legislation and manages the day-to-day business of the EU.

Where have you heard about the European Systemic Risk Board?

Following the 2008 global financial crisis, the European Systemic Risk Board was set up to provide macroprudential regulation, which aims to mitigate the systemic risk of financial instability within the Union’s financial system.

The European Systemic Risk Board is based in Frankfurt, Germany and is part of the European System of Financial Supervision (ESFS), which oversees the European Union’s financial system.

What you need to know about the European Systemic Risk Board.

The European Systemic Risk Board is responsible for monitoring developments in the financial system and assessing systemic risks. It also makes recommendations and has the power to issue warnings where necessary.

All financial institutions and individuals that operate within the market fall into the board’s remit including banks, insurers, asset managers and financial market infrastructures.