Risks and Vulnerabilities - Objectives and Tasks

​​​The Joint Committee carries out work in areas related to cross-sectoral developments, risks and vulnerabilities. In particular it:

  • Ensures adequate coverage of cross-sectoral developments, risks and vulnerabilities, in
    accordance with Article 32 (4) of the ESAs Regulations, also by conducting own analyses. The scope of the analysis includes regulatory developments of cross-sectoral significance, including risks and vulnerabilities of financial conglomerates, respecting that the sectoral analysis of risks and vulnerabilities resides with each of the respective ESAs;
  • Provides analysis of systemic risks with cross-sectoral implications and thus contribute to the activities carried out by the ESAs in relation to systemic risks, as stipulated in Article 22 of the ESA Regulations;
  • Serves as a forum in which the ESAs cooperate regularly and closely, on micro-prudential
    analyses of cross-sectoral developments, risks and vulnerabilities for financial stability in
    accordance with Article 54 (2) of the ESA Regulations;
  • Supports the overall and cross-sectoral coordination of the systemic risk assessment activities of the ESAs, contributes to the ESAs´ coordination of the systemic risk assessment activities with the European Systemic Risk Board (ESRB) and identifies and proposes cross-sectoral issues or potential inconsistencies to be addressed in the ESAs` respective sectoral assessments or by the ESRB.​
  • Fulfils any other tasks set out and agreed by the ESAs` governing bodies as appropriate;
  • Provides micro-prudential analysis focusing on cross-sectoral aspects within the ESFS,
    including risk transfer and contagion issues;
  • Provides regular cross-sectoral micro-prudential risk assessments to the ESAs Board of
    Supervisors and to the Economic and Financial Committee – Financial Stability Table (EFC-FST) and the ESRB, complementing the ESAs´ reports;
  • Develops information databases for the assessment of cross-sector risk transfers and
    contagion channels; and
  • Prepares opinions (Article 34) on cross-sectoral risks, developments and vulnerabilities to the European Parliament, the Council and the Commission.

The Joint Committee may also:

  • Develop guidelines and recommendations to promote safety and soundness of markets and convergence of cross-sectoral supervisory practice;
  • Draft opinions on cross sectoral risks, developments and vulnerabilities for the ESAs to
    provide to the European Parliament, the Council and the Commission, in accordance with Article 22 (5); and
  • Within specific parameters, propose to temporarily prohibit or restrict certain types of cross sectoral financial activities that threaten the orderly functioning of financial markets or the stability of the whole or part of the EU`s financial system.​