ESRB General Board meeting in Frankfurt

The General Board of the European Systemic Risk Board (ESRB) held its 15th regular meeting on 18 September 2014

The ESRB General Board discussed risks and vulnerabilities in the global financial system. The Board focused on the challenges posed by the persistently sluggish recovery and risks from the continued search for yield. It noted that any unravelling of this search for yield could prompt a sharp repricing of risk, which could be amplified by low market liquidity in key market segments. The Board also considered developments in those Member States that encountered banking sector problems during the summer and took note of possible implications of developments in Ukraine.

The ESRB General Board approved a response to a public consultation by the European Securities and Markets Authority (ESMA). The ESRB in its response expresses its overall support for the ESMA proposal on classes of over-the-counter (OTC) credit derivatives that should be subject to central counterparty (CCP) clearing. In addition, the ESRB suggests that further elements should be considered when assessing what classes to include in the clearing requirement. This may lead to an enhancement of the current proposal, allowing more classes to be included later on. The response has been published today on the ESRB’s website. The ESRB’s response to the earlier ESMA consultation regarding a number of OTC interest rate derivatives classes was published in August.

The ESRB General Board took note of a report by the European Commission on its review of the ESRB. The report is available on the website of the European Commission.

The ESRB General Board published the ninth issue of the risk dashboard. The risk dashboard is a set of quantitative and qualitative indicators of systemic risk in the EU financial system. The dashboard is available on the ESRB’s website and in the ECB’s Statistical Data Warehouse.

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