The discipline of macroprudential supervision combines the information and assessments obtained via microprudential supervision with macroeconomic and monetary insights. We expect macroprudential measures, such as countercyclical provisioning, to mitigate systemic risks. We also expect the findings of macroprudential oversight to feed into the microprudential work that alerts supervisors and the wider world to macroeconomic risks.
Besides setting up the ESRB, on 1 January this year, three European Supervisory Authorities (ESAs) came into being: the European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority. We expect that these new institutions will sustainably enhance microprudential supervision in Europe. Currently, the EU and euro area financial system continue to face several important risks.