Regulatory Alerts2010-09-30
Trans-Tasman Bank Distress Management Memorandum of Cooperation
Issued by Australian and New Zealand financial regulators, this memorandum establishes a coordinated framework for managing financial distress in trans-Tasman banking groups to prevent cross-border systemic instability. It delineates specific supervisory, liquidity, and resolution responsibilities for each agency while mandating information sharing, joint impact assessments, and synchronized public communications during a crisis. The agreement prioritizes private sector solutions and government support only when necessary, ensuring that any public intervention minimizes taxpayer costs, maintains market discipline, and facilitates an orderly exit.
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