The ESRB issues warnings on vulnerabilities in the European Union when significant systemic risks to financial stability are identified and when it is necessary to flag such risks.
Warnings can be addressed to the European Union as a whole or to Member States, the European supervisory authorities or national authorities. The ESRB decides, on a case-by-case basis, whether a warning should be made public, bearing in mind that disclosure can help foster compliance. The ESRB will then monitor if, and to what extent, the systemic risk is addressed. Where appropriate, the ESRB will consider issuing a recommendation.
On 22 September 2022 the ESRB adopted a general warning on vulnerabilities in the financial system, addressed to the European Union and the national supervisory community. The likelihood of tail risk scenarios materialising has significantly increased since the start of 2022. Recent geopolitical developments have exacerbated the situation. The ESRB warning calls for heightened awareness of the risks to financial stability. It emphasises the need for greater resilience in the EU financial sector so that the financial system can support the economy if these risks materialise.
On 2 December 2021 the ESRB adopted warnings for five Member States on medium-term vulnerabilities in the residential real estate sector. The Member States were given a period of time to respond to the warnings. Responses received and additional documents were then published on 11 February 2022. Country-specific vulnerability assessments are available in the ESRB’s report on vulnerabilities in the residential real estate sectors of the EEA countries.
On 27 June 2019 the ESRB adopted warnings for five Member States on medium-term vulnerabilities in the residential real estate sector. The Member States were given a period of time to respond, and the warnings, responses received and additional documents were then published on 23 September 2019. The country-specific vulnerability assessments are available in the ESRB Report on vulnerabilities in the residential real estate sectors of the EEA countries.
On 22 September 2016 the ESRB adopted warnings for eight Member States on medium-term vulnerabilities in the residential real estate sector. The Member States were given a period of time to respond, and the warnings, responses received and additional documents were then published on 28 November 2016. The country-specific vulnerability assessments are available in the ESRB report on vulnerabilities in the EU residential real estate sector.