FDIC and SRB signed a Cooperation Arrangement to further strengthen the close cooperation between the two organizations, in compliance with the legal frameworks in the United States and the EU.
The Cooperation Arrangement is intended to provide a basis for the exchange of information and cooperation in resolution planning and the implementation of such planning for financial institutions with operations in the Banking Union as well as the United States. FDIC and SRB confirm, through this arrangement, their commitment to strengthen cross-border resolvability by enhancing communication and cooperation. This also confirms their commitment to work together in planning and conducting an orderly cross-border resolution. The goal is to facilitate the resolution of banks present across the respective jurisdictions while maintaining financial stability in the United States and the EU.
Many large financial institutions have a global presence. Officials from the SRB and FDIC are continuously coordinating with other resolution authorities, tackling the challenges of bank resolution, and preparing for effective cross-border resolution, if needed. Cooperation among resolution authorities is important to help ensure that global systemically important banks (G-SIBs) can fail without major systemic consequences. Bilateral arrangements signed between resolution authorities to underpin this cooperation are an important ingredient for building resolvability together and for advance planning for resolution. FDIC and SRB have, therefore, concluded a Cooperation Arrangement.
Keywords: Americas, Europe, EU, US, Banking, Cooperation Arrangement, Cross Border, Resolution, SRB, FDIC
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