Ingves: “It takes all sorts…” - macroprudential oversight in the EU
At the European Systemic Risk Board's (ESRB) annual conference in Frankfurt on Friday, Governor Stefan Ingves gave a speech in his capacity as Chair of the ESRB Advisory Technical Committee (ATC) on the ESRB's contribution to the field of macroprudential policy since its start in 2011, and its important role for the future.
The financial crisis entailed new game rules for the financial markets, with an increased focus on the systemic-risk perspective, and a new framework for organising the supervision of the financial sector. The ESRB is a bearing pillar within this framework through its task of identifying and warning of risks that threaten the stability of the financial system within the EU, and where necessary issuing recommendations of measures to counteract them.
"The ESRB, with its broad membership, plays a key role in the EU macroprudential policy work. Within the ESRB we analyse and discuss important vulnerabilities and potential systemic risks on a regular basis, as well as what can be done to alleviate them. The ESRB also works on further developing both the analytical tools and policy instruments within the macroprudential field. The need for a holistic approach in the financial system, which can capture the way in which all of these parts are interlinked and interact, will surely grow in our increasingly interlinked world. The ESRB, with its broad membership, is well-suited to meet this need," concluded Mr Ingves.
The ESRB's members include all of the central banks in the EU and financial supervisory authorities at both national and EU level, the European Commission, the EU Economic and Financial Committee and an Advisory Scientific Committee consisting of academics with different types of relevant expertise.
