European Systemic Risk Board (ESRB)

The European Systemic Risk Board (ESRB) is an independent EU body responsible for monitoring and assessing systemic risks to the stability of the European financial system. The ESRB works to identify potential threats to financial stability, issue warnings, and recommend measures to mitigate these risks. It collaborates with national central banks, supervisory authorities, and other EU institutions to enhance financial resilience and prevent crises that could impact the European economy. The ESRB plays a crucial role in safeguarding financial stability across the EU, providing early warnings and promoting preventive measures to reduce systemic risks.

Example

The ESRB might issue a warning about rising property prices in several EU countries, advising national regulators to tighten lending standards to prevent a housing bubble.