RBI signs cooperation pacts with central banks of Australia & NZ

The Reserve Bank of India (RBI) has signed cooperation agreements with the central banks of Australia and New Zealand for exchange of information. The memoranda of understanding (MoUs) provided a formal, yet legally non-binding, channel for information exchange between the supervisors, RBI said in a statement. With this, the apex bank had signed such MoUs with 18 supervisors, it said.

The MoUs provided for sharing of information on the health of the supervised entities, cooperation between the supervisors during on-site examinations, frequent meetings between the supervisors and preserving the confidentiality of information shared, it said.

This is done through pre-identified contact points as mentioned in the agreement which makes it easier for either supervisor to get in touch with their counterpart in a far easier manner. The pact does not override the laws of the land of either supervisor but only tries to build an environment of supervisory cooperation and coordination in complete adherence to such laws, it said. The agreement were signed by RBI Deputy Governor K C Chakrabarty Australian Prudential Regulation Authority (APRA) Chairman John Laker in Sydney, Australia on November 1. The second MoU was signed by Grant Spencer, Governor, Reserve Bank of New Zealand and K C Chakrabarty on November 4.