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The ESM (and earlier the EFSF) is not a branch of the ECB. Unlike the ECB, the ESM performs the function of lender of last resort to governments, not to private banks. This being said, having different organizations with significant overlapping in functions is not necessarily a bad idea. This ensures competition in the service of elaborating and monitoring conditionalities applied to borrowing governments. One the other hand, when a bailout was needed, if ever, they could leverage each other.