Commission extends common framework
for sharing supervisory information with US authorities

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The European Commission signed on 20 September 2005 a Supplemental Statement of Cooperation with the Federal Deposit Insurance Corporation (“FDIC”).

This supplemental agreement makes the FDIC a party to the original cooperation agreement and common framework for sharing supervisory information, which was put in place in 1999.

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 Supplemental Statement of Cooperation was signed by Alexander Schaub, Internal Market Director General, on behalf of the European Commission, and Christopher J. Spoth, Acting Director, Division of Supervision and Consumer Protection, on behalf of the Federal Deposit Insurance Corportation.