The FDIC and the European Banking Union's Single Resolution Board ("SRB") agreed to a "Cooperation Arrangement" ("Arrangement") to facilitate the exchange of information and coordination in resolution planning efforts for banks with cross-border operations.
In accordance with the Arrangement, the FDIC and the SRB committed to enhancing communication and cooperation to facilitate orderly cross-border liquidation. This includes a commitment to conduct regular consultations and to increase communications during times of financial stress.
The Arrangement also sets out a general framework for cooperative efforts and outlines agreed-upon common principles with regard to banks with cross-border operations. It further includes provisions related to information-sharing, interagency training exercises, and notification requirements related to resolution events. Additionally, the Arrangement provides for a review of its provisions every two years.
The Arrangement does not create any legally binding obligations.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
