ESRB General Board meeting in Frankfurt
The General Board of the European Systemic Risk Board (ESRB) held its 14th regular meeting on 18 June 2014
The ESRB General Board discussed risks and vulnerabilities in the global financial system. The Board focused on the challenges posed by buoyant financial markets, together with a sluggish recovery. Against this background, the Board asked for further work to be undertaken on real estate markets and on fines and similar conduct costs for banks. The General Board took note of on-going work on the possible implications of developments in Ukraine.
The ESRB General Board approved a Recommendation on guidance to EU Member States for setting countercyclical buffer rates. The guidance, which is required under EU legislation, serves the purpose of establishing a common approach to setting the countercyclical capital buffer across Europe. This is a crucial step towards operationalising the macro-prudential framework in Europe.
The ESRB General Board discussed the implementation of Recommendation ESRB/2011/3 on the macro-prudential mandate of national authorities. Overall, the level of implementation of the Recommendation has been positive – with legislative initiatives under way in all Member States. The assessment is being transmitted to the Council in line with the requirements set out in the ESRB Regulation. A report setting out the ESRB’s overall assessment is available on the ESRB’s website.
The ESRB General Board made two appointments, in line with ESRB Regulation (EU) No 1092/2010, namely:
- Christian Noyer, as a new member of the Steering Committee, replacing Jens Weidmann, for a term of three years. Christian Noyer has been Governor of Banque de France since 2003.
- Ross Levine, as a new member of the Advisory Scientific Committee (ASC), replacing Claudia Buch. Ross Levine has been Willis H. Booth Chair in Banking and Finance at the Haas School of Business since 2012.
The ESRB General Board published the 8th issue of the risk dashboard. The risk dashboard is a set of quantitative and qualitative indicators of systemic risk in the EU’s financial system.
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