The Nordic and Baltic central banks have signed a Memorandum of Understanding on cooperation to support financial stability
The heads of the Nordic and Baltic central banks signed an agreement last week on the principles for sharing information and providing emergency liquidity assistance with regard to cross-border banking groups.
Banking groups operating across borders supports the integration and development of the economy in the region, and improves the efficiency of the banking sector. At the same time it increases the risk that a problem in banking in one country may affect the financial stability of other countries. Successful cooperation between central banks helps improve financial stability in the Nordic and Baltic countries.
The new agreement will replace the cooperation agreements signed in 2003 between the central banks of the Nordic countries and in 2006 between the central banks of Estonia, Latvia, Lithuania and Sweden.