Smooth cooperation and regular exchanges of information are essential conditions for maintaining financial stability, in normal times as well as in turbulent times. At the national level the Banque centrale du Luxembourg cooperates with the government and national prudential supervisory authorities to safeguard financial stability.
In this respect, a Memorandum of Understanding was signed in June 2008 defining the general principles of the cooperation between prudential supervision authorities, the Banque centrale and the Ministry of Finance in cross-border financial stability.
In following with the transposition into national law of the Recommendation of the European Systemic Risk Board (ESRB) to implement a macroprudential authority within each EU Member State, a Systemic Risk Committee (CRS) was created in Luxembourg. The mission of the CRS is to coordinate the operation of macroprudential policy at the national level and to reinforce the cooperation between the relevant authorities in the areas of microprudential and macroprudential supervision. In this context, the BCL is responsible for providing the Secretariat of the CRS in addition to contributing expert analyses in relation to the legal competencies and responsibilities of the Systemic Risk Committee.