IMF Staff Country Reports

The institutional framework for macroprudential policy in Euro Area (EA) is complex, but in line with IMF guidance. While the European Systemic Risk Board (ESRB) is responsible for the macroprudential oversight of the European Union (EU) financial system as a whole, there is a clear designation of tasks, responsibilities and tools for macroprudential supervision in the EA to the European Central Bank (ECB) The relevant EA national authorities and the ECB share the responsibility for the macroprudential policy tools specified in EU legislation concerning banks. The ECB has successfully advanced macroprudential actions for these tools without formally using its top-up power. The ESRB has contributed to the stability of the European financial system via its warnings, recommendations and with a focus that goes beyond banks. The ECB, ESRB and national authorities’ collaboration is very important to harness the knowledge in the membership efficiently.