WASHINGTON — The Federal Deposit Insurance Corp. and its counterpart in Canada have signed a memorandum of understanding agreeing to share information, provide mutual assistance and take other steps to coordinate with each other if a large institution operating in both countries were to fail.

The nonbinding agreement, signed by FDIC Chairman Martin Gruenberg and Canada Deposit Insurance Corp. chief executive Michèle Bourque, expands on the FDIC's growing efforts to cross international borders as it constructs a new resolution facility for financial behemoths authorized by the Dodd-Frank Act. The agency now has MOUs in place with authorities in six jurisdictions, in addition to other multilateral initiatives.

The U.S.-Canada accord mostly focuses on the two agencies' intent to share information. They said they would seek enhanced cooperation "in the analysis of firms' resolution issues," preparing for certain failure scenarios and attempts to "facilitate mutual understanding of recovery and resolution plan rulemaking, rule, practice and implementation in each other's jurisdiction."

Under the agreement, the FDIC and CDIC will each designate at least one primary contact person to facilitate communication between the two agencies. The memorandum also calls for efforts to cooperate in the monitoring of firms for the purposes of resolution planning.

The agencies "acknowledge that their legal duties and objectives will often align with the goals of maximizing recoveries, minimizing losses and minimizing moral hazard," they said in the MOU. "Where this is the case they will endeavor, subject to applicable laws and regulations and any other applicable commitments, to cooperate and coordinate in order to identify and implement resolution processes and joint communication strategies that meet these goals in both of their respective jurisdictions."

Besides Canada, the FDIC has MOUs in place with the United Kingdom, China, Ireland, the Cayman Islands and the small island jurisdiction of Jersey. Bilateral efforts have advanced the furthest with the U.K., where the vast majority of overseas operations of U.S. financial institutions are based. Late last year, the FDIC and the Bank of England released a paper jointly favoring so-called "single point of entry" resolutions. The method involves a firm's holding company being closed, its functioning subsidiaries coming under control of a bridge entity and the conversion of outstanding debt into equity to recapitalize the surviving institution.

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