The suggested provisions requiring addressees to take remedial action or, otherwise, to justify why they have not acted, should give the necessary “traction” to the deliverables of the Systemic Risk Board. The principle of “comply or explain” is the right one. The ESRB will have very close links with the ECB.
The members of the General Council of the ECB will be voting members of the ESRB, together with the three heads of the supervisory authorities and a member of the Commission; the members of the General Council of the ECB will elect the chair and vice-chair of the ESRB; and the ECB will provide analytical, statistical, administrative and logistical support to the ESRB, as suggested by the de Larosière group, communicated by the Commission, decided by the ECOFIN Council and approved by the European Council in June this year.