European Systemic Risk Board
The European Systemic Risk Board (ESRB) is part of the new European regulatory and supervisory structure and took up its work at the beginning of 2011. The ESRB assumes the task of macroprudential oversight in the EU. If serious risks or imbalances in the European financial system are identified, the ESRB can issue warnings and recommendations to the EU, the EU member states or the European and national supervisory authorities. These warnings and recommendations may be communicated either confidentially or publicly. Recommendations include concrete measures to combat any risks or imbalances that have been identified. Although these recommendations are not legally binding, the addressee must give sufficient explanation as to why measures were rejected. If the recommendations are accepted, the ESRB monitors their implementation.
The ESRB's central decision-making body is the General Board. It consists of 65 members, of which 37 have voting rights. Decisions on warnings and recommendations are taken with a two-thirds majority. Members of the General Board include the president and vice-president of the ECB, the national central bank governors of all EU countries, the heads of national and European supervisory authorities and the EU Commissioner for Economics and Monetary Affairs.