The ESRB is responsible for the macroprudential oversight of the EU financial system and the prevention and mitigation of systemic risk. The ESRB therefore has a broad remit, covering banks, insurers, asset managers, shadow banks, financial market infrastructures and other financial institutions and markets.
In pursuit of its macroprudential mandate, the ESRB monitors and assesses systemic risks and, where appropriate, issues warnings and recommendations.
In response to the global financial crisis, the European Commission tasked a High Level Group, chaired by Mr Jacques de Larosière, to consider how financial supervision could be strengthened to better protect European citizens and rebuild trust in the financial system. The de Larosière Group highlighted that supervisory arrangements should concentrate not only on the supervision of individual firms but also on the stability of the financial system as whole.
In 2009, the de Larosière report recommended that a Union-level body be established with a mandate to oversee risk in the financial system.
On 16 December 2010 the regulation establishing the ESRB entered into force. A new regulation was published on 18 December 2019.