PRESS RELEASE
Federal Deposit Insurance Corporation Each Depositor insured to at least $250,000
FOR IMMEDIATE RELEASE
May 26, 2010
Media Contact:
Andrew Gray
(202) 898-7192
Email: angray@fdic.gov
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's
banking system. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing
risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its
operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html ) and may also be obtained through the FDIC's Public Information
Center (877-275-3342 or 703-562-2200). PR-122-2010
FDIC and China Banking Regulatory Commission Announce Enhanced
Cooperation in Resolving Troubled Cross-Border Financial Institutions
The Federal Deposit Insurance Corporation (FDIC) and the China Banking Regulatory
Commission (CBRC) today announced their agreement to enhance cooperation and
coordination on cross border resolutions. Today's agreement was signed by Chairman
Sheila C. Bair and Chairman Liu Mingkang of the CBRC in Beijing, China, where
Chairman Bair participated in this week's Strategic and Economic Dialogue between the
two countries.
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 agreement represents a commitment by
the FDIC and CBRC to improved collaboration on key issues for addressing crisis
management and the resolution of cross border banks. 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.
Federal Deposit Insurance Corporation Each Depositor insured to at least $250,000
FOR IMMEDIATE RELEASE
May 26, 2010
Media Contact:
Andrew Gray
(202) 898-7192
Email: angray@fdic.gov
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's
banking system. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing
risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its
operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html ) and may also be obtained through the FDIC's Public Information
Center (877-275-3342 or 703-562-2200). PR-122-2010
FDIC and China Banking Regulatory Commission Announce Enhanced
Cooperation in Resolving Troubled Cross-Border Financial Institutions
The Federal Deposit Insurance Corporation (FDIC) and the China Banking Regulatory
Commission (CBRC) today announced their agreement to enhance cooperation and
coordination on cross border resolutions. Today's agreement was signed by Chairman
Sheila C. Bair and Chairman Liu Mingkang of the CBRC in Beijing, China, where
Chairman Bair participated in this week's Strategic and Economic Dialogue between the
two countries.
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 agreement represents a commitment by
the FDIC and CBRC to improved collaboration on key issues for addressing crisis
management and the resolution of cross border banks. 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 reflects the practical experience the FDIC and CBRC gained in the
resolution of United Commercial Bank of San Francisco, an $11.2 billion institution,
which had owned a subsidiary bank in China, and failed on November 6, 2009. Through
their coordinated efforts, the FDIC and CBRC were able to achieve a resolution that
was least costly and preserved ongoing banking operations of the institution in both
countries through a sale of United Commercial Bank to East West Bank. Applying the
lessons learned in this resolution, today's agreement provides a framework for further
coordination and consultation to ensure effective resolutions in the future.
FDIC Chairman Bair said, "As banking operations have become increasingly global, it
has proven critical for the various governmental resolution authorities to have the
appropriate framework in place to ensure cooperation and communication should an
institution become troubled.
This agreement is an invaluable step forward toward implementing the
recommendations of the Basel Committee's Cross Border Bank Resolution Group,
which the FDIC co-chaired. I look forward to continuing to build on this important
relationship."
Today's 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.
Attachment:
Appendix to Memorandum of Understanding between the China Banking Regulatory
Commission and the Federal Deposit Insurance Corporation to Address Cross Border
Resolutions - PDF (PDF Help)
resolution of United Commercial Bank of San Francisco, an $11.2 billion institution,
which had owned a subsidiary bank in China, and failed on November 6, 2009. Through
their coordinated efforts, the FDIC and CBRC were able to achieve a resolution that
was least costly and preserved ongoing banking operations of the institution in both
countries through a sale of United Commercial Bank to East West Bank. Applying the
lessons learned in this resolution, today's agreement provides a framework for further
coordination and consultation to ensure effective resolutions in the future.
FDIC Chairman Bair said, "As banking operations have become increasingly global, it
has proven critical for the various governmental resolution authorities to have the
appropriate framework in place to ensure cooperation and communication should an
institution become troubled.
This agreement is an invaluable step forward toward implementing the
recommendations of the Basel Committee's Cross Border Bank Resolution Group,
which the FDIC co-chaired. I look forward to continuing to build on this important
relationship."
Today's 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.
Attachment:
Appendix to Memorandum of Understanding between the China Banking Regulatory
Commission and the Federal Deposit Insurance Corporation to Address Cross Border
Resolutions - PDF (PDF Help)