The European Commission signed on 17 September 1999 a Statement of Cooperation with the Office of the Comptroller of the Currency (OCC – a US banking supervisory authority) and the Board of Governors of the Federal Reserve System, and agreed upon a common framework to enhance the information sharing among bank supervisors. The framework will serve as a basis for bilateral cooperative arrangements between US and European Union (EU) supervisors.
Banking supervisors in the US and the EU share a common interest in strengthening international cooperation to ensure sound banking systems and financial markets. Although the Statement of Cooperation is not a legal document, it provides a basis for subsequent, more detailed bilateral arrangements between US supervisors and the bank supervisors in the EU Members States. Such close cooperation between supervisors will facilitate comprehensive consolidated supervision of banks that have operations in both the US and the EU.
The framework for information-sharing addresses three specific areas: sharing of supervisory information and consultation regarding common supervisory issues; on-site inspections; and confidentiality of information. The framework is intended to leave sufficient discretion and flexibility to take into account any factors that are particular to the supervisory authorities and bank and banking organisations involved.
The Statement of Cooperation does not affect existing bilateral arrangements between the US and EU Member States. US supervisors currently have bilateral information-sharing arrangements with the United Kingdom and Germany.
The Statement of Cooperation was signed by John F. Mogg, Internal Market Director General, on behalf of the European Commission, Susan Krause, Senior Deputy Comptroller of the Currency for International Affairs and J. Virgil Mattingly Jr., Federal Reserve Board General Counsel.