Even though individual banks looked healthier than ever in 2007, the system as a whole was more fragile than ever. This is why, in January 2011, the European Systemic Risk Board (ESRB) was established and charged with ensuring the integrity of the EU’s financial system.
The ESRB’s main tasks are threefold: to identify and prioritise systemic risks; to issue early warnings when significant systemic risks emerge; and to issue policy recommendations for remedial action in response to the risks it identifies. In addition, today’s globalised financial market implies that the efforts aimed at crisis prevention must have a global dimension.