In response to the global financial crisis, the European Commission tasked a High Level Group, chaired by Mr Jacques de Larosière, to consider how the European supervisory arrangements could be strengthened both to better protect its citizens and to rebuild trust in the financial system. Among its many conclusions, the Group highlighted that supervisory arrangements should not only concentrate on the supervision of individual firms but also place emphasis on the stability of the financial system as whole.
In 2009, the de Larosière report recommended, among other things, that a Union level body be established with a mandate to oversee risk in the financial system as a whole. Available in: en, de, es, fr, it, pl
On 16 December 2010 the legislation establishing the ESRB entered into force:
- Regulation (EU) No 1092/2010 of the European Parliament and of the Council of 24/11/2010 (Download) on European Union macro-prudential oversight of the financial system and establishing a European Systemic Risk Board (the ‘ESRB Regulation’).
- Council Regulation (EU) No 1096/2010 of 17/11/2010 (Download) conferring specific tasks upon the European Central Bank concerning the functioning of the European Systemic Risk Board
The ESRB is part of the European System of Financial Supervision (ESFS), the purpose of which is to ensure supervision of the Union’s financial system.
Besides the ESRB, the ESFS comprises:
- the European Banking Authority (EBA) (Download [1.56 MB] the EU regulation);
- the European Insurance and Occupational Pensions Authority (EIOPA) (Download [1.58 MB] the EU regulation);
- the European Securities and Markets Authority (ESMA) (Download [1.57 MB] the EU regulation);
- the Joint Committee of the European Supervisory Authorities (ESAs);
- the competent or supervisory authorities in the Member States as specified in the legislation establishing the three ESAs.