While institutional arrangements differ across countries, central banks often play an explicit role in macroprudential policy and surveillance of risks to ﬁnancial stability. Financial stability begins at home and is a national mandate. Yet, it calls for close collaboration within Europe, given the close integration of markets and the potential of spillovers.
This is why, at the European level, the European Systemic Risk Board (ESRB) has been monitoring ﬁnancial stability in the EU since early 2011. The ESRB can issue warnings and recommendations addressed to the EU as a whole or to Member States, the European Commission, the European supervisory authorities or national authorities.