Skip to main content

Please enter a keyword and click the arrow to search the site

The European Systemic Risk Board in "Crisis Mode"

Subject

Economics

Authors / Editors

Portes R

Biographies

Publication Year

2021

Abstract

In response to the Covid-19 crisis and while both monetary and fiscal authorities were taking direct and unprecedented measures to curb the adverse consequences of this pandemic shock on the real economy, the European Systemic Risk Board (ESRB), i.e. the European Union macroprudential authority that is responsible for financial stability, swung into action. In particular, the ESRB identified five priority areas: (i) the implications for the financial system of guarantee schemes and other fiscal measures to protect the real economy, (ii) market illiquidity and implications for asset managers and insurers, (iii) impact of procyclical downgrades of bonds on markets and entities across the financial system, (iv) system-wide restraints on dividend payments, share buybacks and other payouts and, (v) liquidity risks arising from margin calls. For each of the topics studied, this article sets out the main risks that were identified by the ESRB as well as the different policy recommendations and further steps that, according to the European Union macroprudential authority, should be taken.

Available on ECCH

No


Select up to 4 programmes to compare

Select one more to compare
×
subscribe_image_desktop 5949B9BFE33243D782D1C7A17E3345D0

Sign up to receive our latest news and business thinking direct to your inbox

×

Sign up to receive our latest course information and business thinking

Leave your details above if you would like to receive emails containing the latest thought leadership, invitations to events and news about courses that could enhance your career. If you would prefer not to receive our emails, you can still access the case study by clicking the button below. You can opt-out of receiving our emails at any time by visiting: https://london.edu/my-profile-preferences or by unsubscribing through the link provided in our emails. View our Privacy Policy for more information on your rights.