Memorandum of Understanding on cooperation between the Financial Supervisory Authorities, Central Banks and Finance Ministries of the European Union on cross-border financial stability

As part of their continued efforts to develop EU arrangements for financial stability and deepen the co-operation between relevant authorities, the Financial Supervisory Authorities, the Central Banks and the Finance Ministries of the European Union have signed a new Memorandum of Understanding on co-operation in financial crisis situations (hereinafter referred to as the “Memorandum”).

The Memorandum commits all signatory authorities to cooperate across borders, both in normal times and in crisis situations, in order to ensure preparedness for the management of a potential cross-border crisis situation. The Memorandum is designed to enhance the management and resolution of cross-border systemic financial crises and will seek to facilitate private sector solutions, to minimise the economic and social costs, while promoting market discipline and limiting moral hazard.