This second volume published by the ESRB High-Level Task Force presents technical analysis on aspects of sovereign bond-backed securities (SBBS) related to risk measurement, contractual features, market intelligence, market design and regulation. It is based on analysis conducted by the Task...

This report considers the use of margins and haircuts to meet macroprudential objectives. It (i) explains the need for macroprudential policies to mitigate systemic risk from excessive leverage and procyclicality in collateral requirements; (ii) sets out how margins and haircuts could, in...

Financial markets have been adapting to a low interest rate environment and undergoing major structural changes over the past decade. The changes have profoundly affected financial market functioning and structures, creating new vulnerabilities and systemic risks. This report considers the...

Interest rate trends, particularly when they interact with structural vulnerabilities, may have significant systemic consequences for financial stability. The "low for long" scenario poses significant challenges because, in the long run, it is likely to challenge the profitability of most types...

This report is the synthesis of the analysis of the ESRB Insurance Expert Group on systemic risks in the EU insurance sector. First the role of insurance in the economy is discussed (section 1), then the financial links of insurers with other parts of the economy (section 2). Section 3...

We set out a stylised framework for the policies enacted to address the risks posed by systemically important institutions (SIIs) and to counter the too-big-to-fail (TBTF) problem, examining conceptually how far supervisory and resolution policies are complementary or substitutable. The...