Macro-Prudential Supervision in the EU

This briefing prepared by the Economic Governance Support Unit within the European Parliament provides an overview of the EU macro-prudential policy framework in its various components (i.e. the European Systemic Risk Board, the national macro-prudential authorities, the European Central Bank and its new macro-prudential supervisory competences in the Banking Union). It also provides some examples of national macro-prudential measures taken to date.

See also the related url hyperlink: The European Systemic Risk Board after Five Years of Existence

Before the setting-up of the ESRB in December 2010, there was no authority in the EU entrusted with a clear macro-prudential mandate, either at national or at European level. The ESRB has been given a broad mandate, i.e. forward-looking, EU-wide and across all components of the financial system. Its objective is to prevent financial crises based on its ability to identify rising risks at an early stage and its capacity to prompt addressees to action thanks to its reputation - as it was not given any binding tools. This briefing looks back at five years of existence of the ESRB and gives an overview of its concrete output.

Authors: C. Power, A. Duvillet-Margerit

EP: EPRS: Briefing, June 2016: The European Systemic Risk Board after five years of existence http://www.europarl.europa.eu/RegData/etudes/BRIE/2016/574421/IPOL_BRI(2016)574421_EN.pdf

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