“ At the same time, financial integration increases the scope for cross-border and cross-sector contagion and thus the likelihood of a systemic crisis affecting more than one Member State. Financial stability is, therefore, a common concern for all Member States and the EU as a whole, and must be safeguarded on the basis of close cooperation among all Parties, taking also into account the wider international context. ”
Summary
“MEMORANDUM OF UNDERSTANDING ON COOPERATION BETWEEN THEFINANCIAL SUPERVISORY AUTHORITIES, CENTRAL BANKS AND FINANCE MINISTRIES OF THE EUROPEAN UNIONON CROSS-BORDER FINANCIAL STABILITY Brussels, 1 June 2008 — ECFIN/CEFCPE(2008)REP/53106ANNEXES:ANNEX 1: THE COMMON PRACTICAL GUIDELINESANNEX 2: TEMPLATE FOR A SYSTEMIC ASSESSMENT FRAMEWORK”, is a work by . It explores elements such as crisis, Memorandum and management.
Quotes from MEMORANDUM OF UNDERSTANDING ON COOPERATION BETWEEN THEFINANCIAL SUPERVISORY AUTHORITIES, CENTRAL BANKS AND FINANCE MINISTRIES OF THE EUROPEAN UNIONON CROSS-BORDER FINANCIAL STABILITY Brussels… ()
“ In order to limit the economic impact of a cross-border systemic financial crisis, the EU arrangements for crisis management and resolution must allow a timely and effective response. Crisis preparation in advance is necessary, while preserving sufficient flexibility to deal with the specific circumstances of any potential crisis. Accordingly, it is important to have in place at the EU level common principles, procedures and practical arrangements concerning cooperation among the authorities responsible for preserving financial stability. ”
“ The use of public money to resolve a crisis can never be taken for granted and will only be considered to remedy a serious disturbance in the economy and when overall social benefits are assessed to exceed the cost of recapitalisation at public expense. ”
