On 1 July 2021, the European Systemic Risk Board (ESRB) published the following:

  • Press release on the ESRB general board meeting on 24 June 2021. At this meeting the general board of the ESRB assessed the key systemic risks in the EU, as well as public policy priorities to address them. Among other things its was noted that potential spillovers from the non-financial private sector to the banking sector, most notably through the channel of deteriorating asset quality, remain a risk that needs to be monitored closely. It was also noted that the ESRB had published its annual report covering its risk assessment and contributions to the macro-prudential policy framework over the period 1 April 2020 to 31 March 2021.
  • Issues note on systemic vulnerabilities of and preliminary policy considerations to reform money market funds (MMFs). The issues note sets out the ESRB’s preliminary findings and considerations on the reforms that are needed to enhance resilience in the MMF sector and reduce systemic risk.
  • Data supplement on climate-related risk and financial stability. The supplement focuses on data and measurement issues in physical and transition risk analysis and provides a specific methodological application for each type of risk. It also applies a scenario analysis with long-dated financial risk horizons to capture prospective financial losses resulting from the timeliness and effectiveness of climate policies and technologies.

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