supervisory architecture became operational at the beginning of 2011. it includes three new european supervisory authorities ( esas ) for banking, insurance and securities markets – which aim to strengthen micro - prudential supervision – and the european systemic risk board ( esrb ) responsible for macroprudential oversight. the ecb ensures the secretariat function for the esrb – without prejudice to the principle of central bank independence –, and is also in charge of providing analytical, statistical, administrative and logistical support to this new eu body. moreover, central bankers hold the majority in the esrb ’ s decision - making body, the general board. 3 the main tasks of the esrb are to monitor and assess systemic risk and to issue warnings and, where necessary, recommendations to the relevant policy - makers which are not legally binding but depend on the principle of “ comply or explain ”. however, the ecb ’ s contribution to achieving and maintaining financial stability does not rely exclusively on its responsibilities for an effective functioning of the esrb. obviously, the way the ecb conducts monetary policy also impacts on financial stability. some people call for vast changes in central banks ’ institutional setup and their monetary policy strategies with a view to pursue price stability and financial stability as coequal objectives. in my view, by contrast, major changes in the institutional and strategic framework of monetary policy are not necessary. but business as usual in central banking will not do it either. business as usual would imply adhering to what has become known as the “ jackson hole consensus ”. according to this pre - crisis consensus view, central banks should only respond to asset prices and financial imbalances to the extent that they affect the shorter term inflation forecast. 4 if financial imbalances still emerged, central banks should follow a “ mop up ” or “ cleaning ” strategy after the burst of the bubble. maintaining price stability is simply the best central banks could do to contribute to financial stability. the general board consists of the following members with voting rights : the president and the vice - president of the european central bank ( ecb ) ; the governors of the national central banks of the member states ; one member of the european commission ; the chairperson of the european banking authority ( eba ) ; the chairperson of the european insurance and occupational pensions authority ( eiopa ) ; the chairperson of the european securities and markets authority ( esma ) ; the chair and the two vice - chairs of the advisory scientific committee ( asc ) of the esrb ; the

weaker demand, due for example to a stronger transmission of monetary policy or to a worsening of the international economic environment. euro area banking sector, non - bank financial intermediation and financial stability the euro area financial system has shown resilience in the face of weakening growth prospects and continued high inflation. financial stability concerns are shifting from the immediate impact of rapidly increasing interest rates and related asset price movements to the more medium - term and gradual effects of tighter financial conditions for financial and non - financial sectors. banking sector profitability has so far benefited, in aggregate, from the higher interest rate environment. banks continue to hold sizeable liquidity buffers and have further improved their capital position. asset quality remains robust, although early signs of 2 / 4 bis - central bankers'speeches deterioration are becoming visible. micro - and macroprudential policies and supervision have contributed to the resilience of the banking system, with our recent stress test showing that banks could withstand a severe economic downturn. banks should nonetheless remain attentive to asset quality, liquidity and funding risks, and exercise prudent and forward - looking risk management. moreover, banks need to have credible strategies to advance their business models, considering in particular the digitalisation of financial services. governance and risk management frameworks should keep pace with the acceleration of climate - related financial risks. looking ahead, maintaining resilience in the euro area financial system remains a priority for macroprudential policy, as capital buffers limit potential consequences of shocks. despite the recent portfolio de - risking, credit and liquidity risks in the non - bank financial institutions ( nbfi ) sector continue to be elevated. nbfis thus remain vulnerable to asset price corrections amid macroeconomic uncertainty, volatile markets and a turning of the real estate cycle. several types of investment funds, including real estate funds, show sizeable mismatches between asset liquidity and redemption terms. additionally, some nbfis exhibit material leverage on and off the balance sheet. an important lesson from recent market shocks is the need to significantly boost the resilience of the nbfi sector. this requires a comprehensive strengthening of the policy framework for non - banks, including from a macroprudential perspective, in an internationally coordinated manner. supporting global cooperation we welcome the good progress ukraine has made on its programme under the imf's extended fund facility. in view of the prolonged war, continued support for ukraine by the imf and the international community is crucial