The Federal Deposit Insurance Corp. and a Chinese regulator agreed to conduct better coordination in their resolution functions following the November failure of a bank with operations in China.
The accord, announced Wednesday, between the FDIC and the China Banking Regulatory Commission calls for better "mutual understanding" about the nations' respective polices on insolvency; cooperation in the development of resolution plans for institutions operating in both countries; and enhanced information sharing.
The agreement came as FDIC Chairman Sheila Bair visited China this week with other administration officials to take part in the U.S.-China Strategic Economic Dialogue. Her trip ended Thursday. "As banking operations have become increasingly global, it has proven critical for the various governmental resolution authorities to have the appropriate framework in place to ensure cooperation and communication should an institution become troubled," Bair said in a press release.
The FDIC said the agreement "reflects the practical experience" of the coordination between the two agencies in the November closure of $11 billion-asset United Commercial Bank of San Francisco, which had a subsidiary bank in China.
