January 25 (SeeNews) - The European Central Bank (ECB) said on Wednesday it concluded a memorandum of understanding (MoU) with Romania's central bank and the competent authorities of five other EU member states that are not part of the European banking supervision, to share information and coordinate supervisory activities.
In addition to Romania, the agreement includes the Czech Republic, Denmark, Hungary, Poland and Sweden, further enhancing supervisory cooperation at the European level, ECB said in a statement.
The MoU enables the exchange of information on supervisory matters and issues concerning cross-border supervised institutions, as well as on supervisory methodologies, approaches and priorities. The agreement also encourages cooperation regarding planned measures that may be relevant to each other’s tasks, reducing fragmentation risks in European banking markets in times of stress.
The ECB’s desire to boost cooperation with the national competent authorities of non-participating member states is driven by the strong interconnection of their banking sectors. Moreover, some banks supervised by the ECB have subsidiaries or significant credit exposures towards these member states, according to the statement. Conversely, some institutions based in non-participating member states also have a sizeable presence in jurisdictions supervised by European banking supervision.