The Belgian Presidency of the EU Council has welcomed the extension of the 2008 Memorandum of Understanding on Co-operation between the Financial Supervisory Authorities, Central Banks and Finance Ministries of the European Union on cross-border financial stability to the authorities of the non-EU EEA countries Iceland, Liechtenstein and Norway.

In accordance with the stipulations of the 2008 MoU and at the invitation of the EU signing parties, the Memorandum of Understanding on co-operation between the Financial Supervisory Authorities, Central Banks and Finance Ministries of the European Union on cross-border financial stability was signed by the Financial Supervisory Authorities of Norway and Iceland, the Financial Market Authority of Liechtenstein, the Central Banks of Norway and Iceland, as well as the Ministries of Finance of Iceland, Liechtenstein and Norway and the Icelandic Ministry of Economic Affairs and entered into force on 10 June 2010.

The Memorandum, which is not legally binding, is designed to facilitate the emergence of practical arrangements for co-operation between the relevant national authorities involved in the management and resolution of cross border financial crises. The signature by Iceland, Liechtenstein and Norway of the Memorandum expresses the voluntary commitment of the parties to cooperate with the EU relevant authorities with a view to develop common arrangements for financial stability and to deepen co-operation on cross border issues both in normal times, in order to ensure preparedness for the management of a potential cross-border crisis situation, as well as in crisis situations.

Memorandum of Understanding on cooperation between the  financial supervisory authorities, central banks and  finance ministries of the European Union  on cross-border financial stability

The Memorandum is an extension and update of the 2005 Memorandum and is based on Council conclusions of 9 October 2007, and aims to ensure cooperation in financial crises between Financial Supervisory Authorities, Central Banks and Finance Ministries through appropriate procedures for sharing of information and assessments, in order to facilitate the pursuance of their respective policy functions and to preserve stability of the financial system of individual Member States and of the EU as a whole.

The Memorandum applies both in normal times to enhance the preparedness of the Parties to deal with a cross-border systemic financial crisis; and in a crisis situation regardless of its origin, affecting the stability of the financial system in at least one Member State with a potential cross-border systemic impact in other Member States and involving at least one financial group or affecting the financial infrastructure or the functioning of financial markets.