Public hearing with Christine Lagarde, Chair of the European Systemic Risk Board

Briefing 17-06-2022

This note is prepared in view of a regular public hearing with the Chair of the European Systemic Risk Board (ESRB), Christine Lagarde, which will take place on 20 June 2022. The aim of the meeting is to discuss recent developments in macroprudential policy field, potential systemic risks looming ahead, notably the impact of the Russia-Ukraine conflict. The briefing provides (i) summaries of the issues highlighted by the ESRB in its letters to the European Parliament; (ii) the risks building-up in housing markets; (iii) summarises the ongoing macroprudential policy framework re-view; and (iv) dwells deeper into the cyber risks. It should be noted that various institutions, including the ESRB, are pointing out that there are potentially systemic risks building-up in the commercial real estate sector. Neverthe-less, as the First Vice-Chair of the ESRB Stefan Ingves pointed out in his hearing in the European Parliament, there is a lack of harmonised commercial real estate sector data, which makes the analysis complicated and therefore, commercial real estate risks are not covered in this briefing.