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On European Union macro-prudential oversight of the financial system and establishing a European Systemic Risk Board
Article 3

Article 3 — Mission, objectives and tasks

  1. The ESRB shall be responsible for the macro-prudential oversight of the financial system within the Union in order to contribute to the prevention or mitigation of systemic risks to financial stability in the Union that arise from developments within the financial system and taking into account macroeconomic developments, so as to avoid periods of widespread financial distress. It shall contribute to the smooth functioning of the internal market and thereby ensure a sustainable contribution of the financial sector to economic growth.
  2. For the purposes of paragraph 1, the ESRB shall carry out the following tasks:
    1. determining and/or collecting and analysing all the relevant and necessary information, for the purposes of achieving the objectives described in paragraph 1;
    2. identifying and prioritising systemic risks;
    3. issuing warnings where such systemic risks are deemed to be significant and, where appropriate, making those warnings public;
    4. issuing recommendations for remedial action in response to the risks identified and, where appropriate, making those recommendations public;
    5. when the ESRB determines that an emergency situation may arise pursuant to Article 18 of Regulation (EU) No 1093/2010, of Regulation (EU) No 1094/2010 and of Regulation (EU) No 1095/2010 issuing a confidential warning addressed to the Council and providing the Council with an assessment of the situation, in order to enable the Council to assess the need to adopt a decision addressed to the ESAs determining the existence of an emergency situation;
    6. monitoring the follow-up to warnings and recommendations;
    7. cooperating closely with all the other parties to the ESFS; where appropriate, providing the ESAs with the information on systemic risks required for the performance of their tasks; and, in particular, in collaboration with the ESAs, developing a common set of quantitative and qualitative indicators (risk dashboard) to identify and measure systemic risk;
    8. participating, where appropriate, in the Joint Committee;
    9. coordinating its actions with those of international financial organisations, particularly the IMF and the FSB as well as the relevant bodies in third countries on matters related to macro-prudential oversight;
    10. carrying out other related tasks as specified in Union legislation.