Regulatory Alerts2022-02-27
Memorandum of Cooperation on Trans-Tasman Bank Distress Management
Australian and New Zealand financial regulators have established a Memorandum of Cooperation to coordinate responses to financial distress in banks with significant cross-border operations. The document outlines specific responsibilities for agencies such as APRA, ASIC, the RBA, the RBNZ, and their New Zealand counterparts to ensure stable resolutions while avoiding detrimental impacts on either nation's financial system. It mandates principles including the preference for private sector solutions, coordinated liquidity and capital support, and joint crisis management group formation to maintain market confidence and protect taxpayer funds.
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