Institutional arrangements: In October 2012, the German Parliament passed the Act on
Monitoring Financial Stability (Financial Stability Act, FSA), 9 which formally established a
committee in charge of macroprudential oversight starting on 1 January 2013.
The FSC, which replaced the Standing Committee on Financial Market Stability, is tasked with:
• strengthening cooperation between the institutions represented on the FSC in the
event of a financial crisis;
• discussing the factors that are key to financial stability;
• issuing warnings and recommendations;
• advising on the handling of warnings and recommendations issued by the ESRB; and
• reporting annually to the lower house of Parliament (Bundestag).