The European Systemic Risk Board: Financial Stability for the Entire Membership

This chapter analyses the role of the ESRB, the agency tasked with maintaining financial stability in the EU, and hence central in the face of not only financial crises but also other crises—as other crises would have financial repercussions that would amplify the effects of the initial crises and cause contagion well beyond their initial source. The chapter welcomes a number of the ESRB’s characteristics and achievements: its inclusivity across the EU membership and beyond, its linkage to the wider community through its academic scientific committee, its choice over the past decade as to which subjects to explore, and its methodology of warnings and recommendations. On the other side are a number of issues that it would be worthwhile to address: its relationship with the ECB, its limited involvement in international fora, and its present reliance exclusively on soft power, including on pressing countries to grant reciprocity when called for. The chapter analysis the ESRB’s work over its first decade, identifying its range of activities and emerging trends.