Nyberg: ESRB – reflections after the first nine months
On Tuesday, Deputy Governor Lars Nyberg attended a conference on the macro prudential oversight of the financial sector arranged by Norges Bank and spoke about the experience gained during the first period of operation of the European Systemic Risk Board.
The ESRB started its work during a difficult period when the systemic risks in Europe seemed to be greater than ever and the political and economic problems were tightly interconnected. The ESRB has focused on identifying risks and on suggesting how to handle them. Despite the political sensitivity of the risks that the Board has discussed, the discussions have been frank and genuine. He noted, however, that a lot of work has to be done for the ESRB to establish its working procedures. It also remains to be seen what the Board will be able to achieve in normal circumstances once the current financial crisis is over. "Properly managed, it should develop into a useful institution, forcing countries and authorities to act in time to avoid difficult and dangerous situations. Comply or explain is a powerful tool, if respected," concluded Mr Nyberg.
The European Systemic Risk Board (ESRB) is a new independent EU body responsible for the macro prudential oversight of the EU's financial system. It continuously monitors systemic risks and can issue warnings and make recommendations.
Read the speech in full in the PDF below.
