The financial stability framework needs to be able to identify and assess systemic risks corresponding to the degree of “interconnectedness” I just mentioned. In this context, macro-prudential oversight would focus on factors and risks that can affect the stability of the financial system as a whole and therefore would complement micro-prudential supervision, which looks at the stability of individual financial institutions.
•  Macroprudential oversight will be the key task of the European Systemic Risk Board (ESRB), which is built on the proposals of the group chaired by Jacques de Larosière. •  What will be the activities of the ESRB and what is its value added?