The FDIC signed an agreement with the People’s Bank of China in Beijing last week to extend their working relationship in deposit insurance and resolution as part of an effort to expand their cooperation.
The memorandum of understanding, signed on Thursday, is designed to enhance cooperation in cross-border financial institution recovery and resolution, in planning for recovery and resolution scenarios.
FDIC Chairman Martin J. Gruenberg and PBOC Governor Zhou Xiaochuan were present at the signing, which updated an existing MOU signed in August 2007.
“There is a long history of close collaboration and cooperation between the PBOC and the FDIC, and I am honored to have the opportunity to build on this strong foundation through this MOU,” Gruenberg said. “China and the U.S. have a shared interest in maintaining and expanding our interaction on economic and financial issues, particularly in the areas of deposit insurance and cross-border resolution issues. Among U.S. financial regulators, the FDIC is uniquely positioned to engage and offer our experience with deposit insurance and resolution issues internationally. I welcome this expanded agreement with the PBOC and would like to thank our Chinese hosts, particularly Governor Zhou and the officials at the PBOC, for accommodating the delegation from the FDIC.”