Sveriges Riksbank Stefan Ingves: The importance of being savvy – lessons on European crisis management
21 April 2010
Although EU Member States already signed a MoU to improve cross-border cooperation of banking groups in 2008, the cooperation remained limited in reality, Sweden’s central bank Governor said. To build a well-functioning cooperation structure is highly time consuming but is urgently needed.
Speaking at the Fundación Rafael del Pino in Madrid, Mr Stefan Ingves Governor of the Sveriges Riksbank, said that in 2008, the supervision authorities, central banks and finance ministries of the European Union signed a Memorandum of Understanding aimed at improving cross-border cooperation. This European memorandum encourages Member States with common banking groups to enhance crisis preparedness by developing permanent cooperation structures. These cooperation structures, or so-called Cross-Border Stability Groups, should include a clear division of roles and responsibilities between the authorities and ministries.
Despite the fact that all EU Member States signed this memorandum almost two years ago, cooperation between authorities in different European countries remains limited. For instance only one Cross-Border Stability Group is presently being established.
He emphasized that establishing a well-functioning cooperation structure takes time. So for those countries that have not done so, he recommended immediate start. And do not be dissuaded by the fact that it is time-consuming.
Full speech
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