Establishment of the European Systemic Risk Board (ESRB)
At around the same time as the FSAP, the institutional framework for macroprudential policy
was beginning to take shape in the EU, leading to the establishment of the European Systemic
Risk Board (ESRB) in 2010.
In December 2011, the ESRB issued a recommendation calling
on all EU member states to designate a macroprudential authority – either a single institution
or a board – and to establish the necessary institutional arrangements to support its
functioning. 6 The ESRB issued a follow-up recommendation to national macroprudential
authorities in April 2013, requiring them by the end of 2014 to define their intermediate
objectives and to assess the macro-prudential instruments available to them, and by the end of
2015 to develop a policy strategy.
The recently-approved Single Supervisory Mechanism
(SSM) also includes provisions for the conduct of macroprudential policy in the EU countries
participating in the SSM and coordination between national macroprudential authorities and
the European Central Bank .
EU Forecast
euf:ba.18.j:34/nws-01