Adherence of the central banks of the new Member States, Bulgaria and Romania, to the Memorandum of Understanding on high-level principles of co-operation in crisis management situations and the memorandum of understanding on cooperation between payment systems overseers and banking supervisors

In accordance to the procedure already applied on the occasion of the enlargement of the European Union (EU) in 2004 (see press release of 21 July 2004), the central banks of the Member States which joined the EU in 2007, Bulgaria and Romania, have agreed to adhere to (i) the Memorandum of Understanding on high-level principles of co-operation in crisis management situations, in force since 1 March 2003, and (ii) the Memorandum of Understanding on co-operation between payment systems overseers and banking supervisors in Stage Three of Economic and Monetary Union, in force since 1 January 2001. The full list of the authorities which are now parties to these Memoranda of Understanding (MoUs) is included in Annex 1 to this press release. The provisions of the MoUs pertaining to the central banks and banking supervisors of the new Member States entered into effect on 1 August 2007.

The Memorandum of Understanding on high-level principles of co-operation in crisis management situations between the banking supervisors and central banks of the EU consists of a set of principles and procedures for cross-border co-operation between banking supervisors and central banks in crisis situations. These principles and procedures deal specifically with the identification of the authorities responsible for crisis management, the required flows of information between all the involved authorities and the practical conditions for sharing information at the cross-border level. The MoU also provides for the establishment of a logistical infrastructure to support the enhanced cross-border co-operation between authorities.

The framework defined in the MoU will apply in crisis situations with a possible cross-border impact involving individual credit institutions or banking groups, or relating to disturbances in money and financial markets and/or market infrastructures (including payments infrastructures) with potential common implications for Member States. Co-operation will take the form required by the specific features of the crisis and with regard to all the relevant supervisory and central banking tasks and functions, and will be consistent with the necessary flexibility of action of each of the authorities involved. Further information is available in the press release of 10 March 2003.

The Memorandum of Understanding on co-operation between payment systems overseers and banking supervisors in Stage Three of Economic and Monetary Union is aimed primarily at promoting co-operation in relation to large-value payment systems, but it also deals with co-operation regarding retail payment systems. The updated list of payment systems within its scope is included as Annex 2 to this press release. The overall framework provided by the MoU is defined with a view to ensuring the soundness and stability of the payment systems and of the participating credit institutions. Investment firms participating in payment systems also fall within the scope of the MoU to the extent that their home supervisors have agreed to include them in the agreement. Co-operation and information sharing are specifically foreseen: (i) in the case of an application to join an existing payment system or when a new system is established, (ii) on an ongoing basis, and (iii) in crisis management situations. Further information is available in the press release of 2 April 2001.