The Federal Deposit Insurance Corporation recently signed a memorandum of understanding with Canada Deposit Insurance Corporation that formalizes and empowers cross-border cooperation in the event of the failure of a large, complex financial institution that operates in both countries.
“This agreement is another step in the significant effort underway by the FDIC to engage with our foreign counterparts and build the cross-border relationships critical to effective resolution planning,” FDIC Chairman Martin Gruenberg said. “The FDIC has worked closely with the CDIC on many issues and this MOU is another important step that reflects our productive working relationship.”
Gruenberg and Ottawa CDIC President and CEO Michéle Bourque signed the memorandum on Tuesday in Ottawa.
The agreement adds to the relationship previously established by the FDIC and CDIC by enhancing and strengthening their consultation and cooperation and exchange of information that relates to crisis management and contingency planning.
Bourque said effective planning will support stability and confidence in the financial system during periods of crisis.
“This agreement will advance our collaboration with our most significant international partner,” Bourque said.
The CDIC is a federal Crown corporation established by Parliament in 1967 to protect deposits made with member financial institutions in case of failure.
The FDIC is an independent agency created by Congress to maintain stability and public confidence in the U.S. financial system.