European Systemic Risk Board

The European Systemic Risk Board (ESRB) “shall be responsible for the macro-prudential oversight of the financial system within the Union in order to contribute to the prevention or mitigation of systemic risks to financial stability in the Union that arise from developments within the financial system and taking into account macroeconomic developments, so as to avoid periods of widespread financial distress. It shall contribute to the smooth functioning of the internal market and thereby ensure a sustainable contribution of the financial sector to economic growth”. (see article 3 (1) of Regulation (EU) No 1092/2010 of the European Parliament and of the Council)

The Governor of Banco de Portugal is a voting member of the General Board of ESRB. The national supervisory authorities are also members without voting rights.

ESRB is part of the European System of Financial Supervision (ESFS) whose aim is to ensure an adequate supervision of the Union’s financial system, covering macro and micro-prudential supervision. The ESFS comprises the following:

• the European Systemic Risk Board,
• the European Banking Authority,
• the European Insurance and Occupational Pensions Authority,
• the European Securities and Markets Authority,
• the Joint Committee of the European Supervisory Authorities,
• the supervisory authorities in the Member States.

This new supervisory framework entered into force on 1 January 2011, in accordance with the relevant legislation, published in Official Journal L 331, 15 December 2010.