Proposal for a Council Decision entrusting the European Central Bank with specific tasks concerning the functioning of the European Systemic Risk Board {COM(2009) 499 final} {COM(2009) 501 final} {COM(2009) 502 final} {COM(2009) 503 final} {SEC(2009) 1234} {SEC(2009) 1235}
Date: 2009-09-23
Institutions: European Commission
Subjects: EU office or agency, European Central Bank, credit institution, financial instrument, financial market, financial transaction, monetary policy, operation of the Institutions

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 23.9.2009 
COM(2009) 500 final 

2009/0141 (AVC) 

Proposal for a 

COUNCIL DECISION 

entrusting the European Central Bank with specific tasks concerning the functioning of 
the European Systemic Risk Board 

{COM(2009) 499 final} 
{COM(2009) 501 final} 
{COM(2009) 502 final} 
{COM(2009) 503 final} 
{SEC(2009) 1234} 
{SEC(2009) 1235} 

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2009/0141 (AVC) 

Proposal for a 

COUNCIL DECISION 

entrusting the European Central Bank with specific tasks concerning the functioning of 
the European Systemic Risk Board 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Article 
105(6) thereof, 
Having regard to the proposal from the Commission1, 
Having regard to the opinion of the European Central Bank2, 
Having regard to the assent of the European Parliament3, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

The financial crisis has revealed important shortcomings in the financial supervision, 
which has failed to prevent the accumulation of excessive risks in the financial sector 
and  has  in  particular  highlighted  the  weaknesses  of  the  existing  macro-prudential 
oversight. 

In  November  2008,  the  Commission  mandated  a  High  Level  Group  chaired  by  Mr 
Jacques de Larosière (the "de Larosière Group") to make recommendations on how to 
strengthen  European  supervisory  arrangements  with  a  view  to  better  protecting  its 
citizens and rebuilding trust in the financial system. 

In  its  final  report  presented  on  25  February  2009,  the  de  Larosière  Group 
recommended,  among  other  things,  the  establishment  of  a  Community-level  body 
charged with overseeing risk in the financial system as a whole. 
In  its  Communication  entitled  "Driving  European  Recovery"  of  4  March  20094,  the 
Commission  welcomed  and  broadly  supported  the  recommendations  of  the  de 
Larosière  Group.  At  its  meeting  of  19  and  20  March  2009,  the  European  Council 
agreed on the need to improve the regulation and supervision of financial institutions 
within the EU and to use the report from the de Larosière as a basis for action. 
In its Communication entitled "European Financial Supervision" of 27 May 20095, the 
Commission set out  a  series  of  reforms to the current arrangements for safeguarding 
financial  stability  at  the  EU  level,  notably  including  the  creation  of  a  European 
Systemic Risk Board (ESRB) responsible for macro-prudential oversight. The Council 
on 9 June 2009 and the European Council at its meeting of 18 and 19 June supported 

1 
2 
3 
4 
5 

OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 
COM(2009) 114. 
COM(2009) 252. 

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(6) 

(7) 

(8) 

the  view  of  the  Commission  and  welcomed  the  Commission's  intention  to  bring 
forward legislative proposals so that the new framework can be fully established. 
By  Regulation  (EC)  No  …/2009  of  the  European  Parliament  and  of  the  Council6,  a 
Community level macro prudential oversight of the financial system and a European 
Systemic Risk Board (ESRB) are established. 

Given its expertise on macro-prudential issues, the European Central Bank (ECB) can 
make a significant contribution to the effective macro-prudential oversight of the EU 
financial sector. 

The  Council  concluded  on  9  June  2009  that  the  ECB  should  provide  analytical, 
statistical, administrative and logistical support to the ESRB. The option foreseen by 
the  Treaty  to  confer  specific  tasks  concerning  policies  relating  to  prudential 
supervision upon the ECB should therefore be exercised, by conferring on the ECB the 
task of ensuring the Secretariat to the ESRB.  

HAS ADOPTED THIS DECISION:  

Article 1 
Membership 

The President and the Vice-President of the European Central Bank shall be Members of the 
General Board of the European Systemic Risk Board, hereinafter referred to as "the ESRB" as 
set up by Regulation XXXX. 

Article 2 
Support of the ESRB 

The European Central Bank shall ensure the Secretariat and shall therefore provide analytical, 
statistical, logistical and administrative support to the ESRB. The mission of the Secretariat as 
defined in Article 4(4) of Regulation XXXX, shall include in particular: 

(a) 

(b) 

(c) 

(d) 

The preparation of the ESRB meetings; 

In accordance with Article 5 of this Decision, the collection and processing of 
information, including statistical information, on behalf and for the benefit of 
the fulfilment of the ESRB tasks; 

The preparation of analysis necessary to carry out the ESRB tasks; 

The support to the ESRB in its international cooperation at administrative level 
with other relevant bodies on macro-prudential issues;  

(e) 

The support to the work of the Advisory Technical Committee. 

Article 3 
Organisation of the Secretariat 

1. 

2. 

The ECB shall ensure sufficient human and financial resources for the fulfilment of 
its task of ensuring the Secretariat.  

The Head of the Secretariat shall be appointed by the ECB, in consultation with the 
General Board of the ESRB. 

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OJ L , , p. . 

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Article 4 
Management  

The Chair of the General Board shall give directions to the Head of the Secretariat on 
behalf of the ESRB.  

The Head of the Secretariat or its representative shall attend the General Board and 
the Steering Committee meetings of the ESRB. 

Article 5 
Collection of information on behalf of the ESRB 

The  ESRB  shall  determine  the  information  necessary  for  the  purpose  of  the 
performance of the tasks of the ESRB. In view thereof, the Secretariat shall collect 
that  information  on  a  regular  and  ad  hoc  basis,  subject  to  the  confidentiality 
provisions of Article 6. 

The Secretariat may request information, in individual, summary or collective form, 
relating to financial institutions or markets relevant for the tasks of the ESRB from 
the  European  Supervisory  Authorities  and,  in  the  cases  specified  in  Article  15  of 
Regulation  (EC)  No  …./2009,  the  national  supervisory  authorities,  the  national 
central banks or other authorities of the Member States.  

This collection of information on behalf of the ESRB may include Community, euro 
area  and  national  aggregated  and  individual  data  the  latter  upon  reasoned  request. 
Before  a  request  for  data  is  made,  the  Secretariat  shall  first  take  account  of  the 
existing  statistics  produced,  disseminated  and  developed  by  both  the  European 
Statistical System and the ESCB and then consult the relevant European Supervisory 
Authority, in order to ensure that the request is proportionate.  

The  Secretariat  shall  make  available  to  the  European  Supervisory  Authorities  the 
information on systemic risks required to the exercise of their tasks. 

Article 6 
Confidentiality of data and documents 

Without  prejudice  to  the  application  of  criminal  law,  any  confidential  information 
received by the Secretariat whilst performing its duties may not be divulged to any 
person  or  authority  whatsoever  outside  the  ESRB,  except  in  summary  or  aggregate 
form, such that individual financial institutions cannot be identified. 

The Secretariat shall ensure the confidentiality of documents submitted to the ESRB 
and to the Steering Committee of the ESRB, and of the proceedings of those bodies.  

The ECB shall ensure the confidentiality of the data received for the performance of 
its tasks under this Decision. The ECB shall establish internal mechanisms and adopt 
internal rules to ensure the protection of data collected on behalf of the ESRB. The 
ECB staff shall comply with the applicable rules relating to professional secrecy. 

Information acquired by the ECB as a result of the application of this Decision shall 
be used only for the purposes mentioned in Article 2. 

1. 

2. 

1. 

2. 

3. 

4. 

1. 

2. 

3. 

4. 

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Article 7 
Review clause 

The Council shall examine this Decision three years after the date set out in Article 8, on the 
basis  of  a  report  from  the  Commission  and  shall  determine  whether  the  present  Decision 
needs to be reviewed after having received an opinion from the ECB. 

This Decision shall apply from DD/MM/YYYY; [same date as the Regulation]. 

Article 8 
Applicability 

Article 9 
Addressee 

This Decision is addressed to the European Central Bank. 

Done at Brussels,  

For the Council 
The President 

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