The Federal Deposit Insurance Corporation (FDIC) and the China Banking Regulatory Commission (CBRC) have entered into an agreement to enhance cooperation and coordination on cross border resolutions.

Under the agreement, the two authorities will expand cooperation on contingency planning, coordination, and information sharing related to crisis management and the potential resolution of banks active in the two countries. The agreement will significantly strengthen cooperation between the CBRC and FDIC on these critical cross-border crisis management and resolution issues.

The FDIC and CBRC agreed to:

• Improve mutual understanding about their respective national regulations and laws on bank insolvency;
• Cooperate in developing resiliency and resolution plans for banks operating in both the U.S. and China;
• Conduct joint contingency planning to improve readiness for any future resolutions;
• Enhance information exchanges about developing issues and cross border financial institutions during periods of financial stress; and
• Develop closer coordination in the implementation of their resolution responsibilities in any future crisis involving banks operating in both countries.

This agreement supplements the existing Memorandum of Understanding (MOU) on supervisory cooperation between the CBRC and the FDIC, the Federal Reserve, and the Office of the Comptroller of the Currency in 2004. The Office of Thrift Supervision became a signatory to that agreement in 2007.

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