PRESS RELEASE

Adherence of the central banks and banking supervisors of the new Member States to the Memoranda of Understanding on high-level principles of co-operation in crisis management situations and between payment systems overseers and banking supervisors

21 July 2004

The banking supervisory authorities and the central banks of the new Member States of the European Union (EU) 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 adherence of the central banks and banking supervisors of the new Member States to the MoUs entered into effect on 17 June 2004.

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 setting-up 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. The updated list of payment systems within its scope is included as Annex 2 to this press release. Additionally, the MoU may serve as a starting point for co-operation regarding retail payment systems, including e-money schemes. 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.

ANNEX 1 - Parties to the Memoranda of Understanding

Commission bancaire et financière/Commissie voor het Bank- en Financiewezen, Belgium

Nationale Bank van België/Banque Nationale de Belgique

Česká národní banka

Danmarks Nationalbank

Finanstilsynet, Denmark

Bundesanstalt für Finanzdienstleistungsaufsicht, Germany

Deutsche Bundesbank

Eesti Pank

Finantsinspektsioon, Estonia

Bank of Greece

Banco de España

Banque de France

Commission Bancaire, France

Central Bank & Financial Services Authority of Ireland

Banca d’Italia

Central Bank of Cyprus

Latvijas Banka

Finanšu un Kapitāla Tirgus Komisija, Latvia

Lietuvos bankas

Banque centrale du Luxembourg

Commission de Surveillance du Secteur Financier, Luxembourg

Magyar Nemzeti Bank

Pénzügyi Szervezetek Állami Felügyelete, Hungary

Central Bank of Malta

Malta Financial Services Authority

De Nederlandsche Bank

Finanzmarktaufsicht, Austria

Oesterreichische Nationalbank

Narodowy Bank Polski

Komisja Nadzoru Bankowego, Poland

Banco de Portugal

Banka Slovenije

Národná banka Slovenska

Rahoitustarkastus, Finland

Suomen Pankki – Finlands Bank

Finansinspektionen, Sweden

Sveriges Riksbank

Bank of England

Financial Services Authority, United Kingdom

European Central Bank

ANNEX 2 - List of systems and respective overseers for the purposes of the MoU between payment systems overseers and banking supervisors in Stage Three of EMU

LARGE-VALUE PAYMENT SYSTEMS OVERSEERS
TARGET as a whole ECB/Eurosystem
National components of TARGET
ELLIPS Nationale Bank van België/ Banque Nationale de Belgique
RTGS plus Deutsche Bundesbank
HERMES Bank of Greece
SLBE Banco de España
TBF Banque de France
IRIS Central Bank & Financial Services Authority of Ireland
BI-REL Banca d’Italia
LIPS-Gross Banque centrale du Luxembourg
TOP De Nederlandsche Bank
ARTIS Oesterreichische Nationalbank
SPGT Banco de Portugal
BOF-RTGS Suomen Pankki – Finlands Bank
EPM ECB
KRONOS Euro Danmarks Nationalbank
Euro RIX Sveriges Riksbank
CHAPS Euro Bank of England
Euro System of the EBA Clearing Company (EURO 1) ECB
Paris Net Settlement (PNS) Banque de France
Servicio de Pagos Interbancarios (SPI) Banco de España
Pankkien On-line Pikasiirrot ja Sekit-järjestelmä (POPS) Suomen Pankki – Finlands Bank
Clearing House Automated Payment Systems (CHAPS) Bank of England
SIBPS real-time gross settlement system Banka Slovenije
Large-Value Credit Transfer System Central Bank of Cyprus
MaRIS Central Bank of Malta
CERTIS Česká národní banka
KRONOS (Danish kroner) Danmarks Nationalbank
Estonian RTGS system Eesti Pank
Estonian DNS system Eesti Pank
Starpbanku Automatizētā Maksājumu Sistēma (SAMS) Latvijas Banka
LITAS Lietuvos bankas
VIBER Magyar Nemzeti Bank
SIPS Národná banka Slovenska
SORBNET Narodowy Bank Polski
RIX-systemet Sveriges Riksbank
Continuous Linked Settlement Bank International (CLS Bank) ECB (in respect of euro operations), Danmarks Nationalbank (in respect of the inclusion of, and settlement procedures for, the Danish kroner), Bank of England (in respect of pound sterling operations and as designating authority under the Settlement Finality Directive), and US Federal Reserve (as lead overseer of the system).
RETAIL PAYMENT SYSTEMS OVERSEERS
Système Interbancaire de Télécompensation (SIT) Banque de France

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