HELSINKI: The Nordic countries have taken a joint move to facilitate cross border banking cooperation among the nations, said a government press release on Monday. The Finance Ministers of Norway and Finland, the Minister for Business of Denmark and the Minister for Financial Markets and Consumer Affairs of Sweden sign a Memorandum of Understanding in order to facilitate the cooperation regarding cross-border banking groups containing one or more significant branches. “Today’s financial markets are highly international. Clear and unambiguous cross-border cooperation between public authorities is important, both for the markets and those who are being controlled. I am very happy that our Nordic cooperation really works in this sector as well,” said Minister of Finance Petteri Orpo.
Several of the large Nordic banking groups conduct cross border activities in the neighbouring countries, either through a branch or directly without such an establishment. It is a common objective to contribute to a level playing field in the Nordic market and ensure effective and efficient supervision of significant branches located within the signatory countries.
The competent authorities and Ministries in the relevant countries have therefore signed two separate Memoranda of Understandings (MoUs) on significant branches in order to facilitate the cooperation regarding cross-border banking groups containing one or more of such branches.
Responsibility for significant branches is regulated in the Union and EEA law. The now relevant MoUs are of an all-embracing character and encompass significant branches more generally. The MoUs do not modify or supersede Union and EEA law, but are to be regarded as written understanding on how cooperation regarding significant branches in Denmark, Finland, Norway and Sweden should be conducted, the press release added.
