The European Systemic Risk Committee plays a crucial role in overseeing macroprudential supervision to ensure the stability of the financial system in the EU. This involves monitoring the market, ensuring smooth payments, and promoting quality financial intermediation. By implementing strict banking monitoring mechanisms and supervising managerial strategies, the committee aims to mitigate risks and prevent the banking system from being severely impacted by macroeconomic shocks during financial crises. Effective financial and macroprudential supervision is essential for maintaining a healthy financial system that supports economic growth.