Article 20 of the founding Regulation of the European Systemic Risk Board (ESRB) provides that the European Parliament and the Council of the EU shall determine whether the ESRB’s mission and organisation need to be reviewed. Prior to making this determination, these EU institutions shall receive an opinion from the European Supervisory Authorities (ESAs). The ESAs comprise of the European Securities and Markets Authority, the European Banking Authority and the European Insurance and Occupational Pensions Authority.
The ESAs have now published a joint opinion concerning the functioning of the ESRB. In the opinion, the ESAs note that:
- the establishment of the ESRB has contributed to providing a macro-prudential oversight element to the EU framework, by its identification and assessment of the interlinkages between developments in the broader macro-economic environment and the financial system;
- the ESRB’s mandate is relevant and should be maintained; and
- their cooperation with the ESRB, within the framework of the European System of Financial Supervision, has worked well.
View Joint opinion – review on the functioning of the European Systemic Risk Board (ESRB), 17 December 2013