Central banks with prudential supervisory powers can pursue the objectives of price stability and financial stability with a wider set of instruments, whereas a central bank with monetary policy powers only might end up being overburdened.
The role of the European Systemic Risk Board (ESRB) is, in turn, to monitor cross-border and cross-sectoral systemic risks in the whole EU area, and provide macroprudential warnings and recommendations to national authorities and European bodies. Last but not least, the European Capital Adequacy framework (CRD IV/CRR) provides a common regulatory rulebook directing also the use of most macroprudential tools.