The European Central Bank inked an agreement on supervision cooperation with six non-Eurozone countries on Wednesday, a framework which will bind the Czech Republic, Denmark, Hungary, Poland, Romania and Sweden to "regularly" exchange data on supervision-related matters with the central bank.
"The Memorandum of Understanding (MoU) also encourages the ECB and the national competent authorities to inform one another of planned measures that may be of relevance to another authority's tasks. This may help to reduce fragmentation risks in European banking markets in times of stress," the central bank explained in the statement.
"Some banks supervised by the ECB have subsidiaries in or sizeable credit exposures towards these Member States and carry out a substantial part of their activities there," the ECB added.
