Date Tuesday 9 December, 2008
Cross-border cooperation between the supervisors of major financial firms is essential to ensure commerce continues smoothly through the downturn, the International Banking Federation reports today.
More work should be done to ensure effective cooperation between national supervisory authorities through “colleges of supervisors” – regular meetings of all of a firm’s supervisors - the IBFed proposes in a paper issued today.
Sally Scutt, Managing Director of IBFed, said:
“Too often large cross-border firms find themselves subject to conflicting rules in different countries. Yet in order for the world’s commercial activity to run smoothly, cross-border finance is vital. Colleges of supervisors can bring that certainty to regulators, regulated firms and crucially their customers.
“Colleges of supervisors have already contributed to greater regulatory effectiveness but we believe more can be done to improve their functioning.”
The paper proposes that colleges should be formalised through a memorandum of understanding and they should be attended by senior regulators so their decisions carry the necessary authority to drive through change where necessary.
It also reports that growing numbers of colleges are being operated successfully for major international firms, and the Financial Stability Forum has proposed the model should be extended to all major cross-border firms by the end of this year.
Ends
For further information contact:
IB Fed secretariat
Brian Capon, assistant director, media, British Bankers’ Association (0) 20 7216 8810
Email: brian.capon@bba.org.uk
American Bankers Association
Jon Snowling 202-663-5468
Email jsnowling@aba.com
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Colleges of supervisors will help global economy through the downturn, says IB Fed (cont)
For further information contact (continued):
Australian Bankers Association
Heather Wellard, director, public relations (02) 8298 0411
Email: heatherw@bankers.asn.au
Canadian Bankers Association
Maura Drew-Lytle director, media relations and communications (416) 362-6093 Ext 338
Email: MDrewLytle@cba.ca
European Banking Federation
Florence Ranson senior adviser PR & Communications 32 (0)2 508 37 34
Japanese Bankers Association
Hirotaka Koyama, manager, public relations division (03) 5252 3752