European Systemic Risk Board Established

Bulgaria in EU | December 17, 2010, Friday // 17:20|  views

Jean-Claude Trichet, President of the ECB and Chair of the ESRB.

The European Systemic Risk Board (ESRB), an independent EU body responsible for the macro-prudential oversight of the financial system within the Union, was established Thursday

It is supposed to contribute to the prevention or reduction of systemic risks to financial stability in the Union that arise from developments within the financial system.

Another ESRB task is to contribute to the smooth functioning of the internal market and thereby ensure a sustainable contribution of the financial sector to economic growth, as the European Central Bank announces.

According to the European Commission's proposal on ESRB's establishment, the Board will not have any binding powers to impose measures on Member States or national authorities. It has been conceived as a "reputational" body with a high level composition that should influence the actions of policy makers and supervisors by means of its moral authority.

The seat of the Board is in Frankfurt am Main in Germany.

The Chair of the ESRB is the President of the European Central Bank, Jean-Claude Trichet, as it is foreseen by the legislation on the basis of which the Board is established.

Mervyn King, Governor of the Bank of England, was elected today as first Vice-Chair of the ESRB by the members of the General Council of the ECB.

The General Board of the ESRB will have its inaugural meeting on 20 January 2011.

The Bulgarian National Bank (BNB) Governor Ivan Iskrov is a member of ESRB's General Council with a right to vote.

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Tags: European Systemic Risk Board, ESRB, European Central Bank, Jean-Claude Trichet, Ivan Iskrov, Bulgarian National Bank

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