The ESRB’s task is to identify and monitor systemic risk, and to issue policy recommendations to mitigate such risks. The two new recommendations focus on ways to mitigate risks encountered by banks in their funding activities and on strengthening the regulatory framework for money market funds in the EU.
See recommendations of the ESRB
This latest issue of the Commentaries reviews the systemic risk issues related to the European banks’ use of USD dollar funding and the ESRB recommendations to national supervisory authorities on this matter.