The Autorité des marchés financiers (AMF) and the Bank of Canada have signed a memorandum of understanding (MoU) for co-operation and information exchange in connection with monitoring of risks at domestic systemically important financial institutions (D-SIFIs), the AMF announced on Monday.
“The MoU formalizes the information exchange framework between the AMF and the bank and fosters co-operation between the two agencies. This closer co-operation, designed to help avoid and mitigate the risks of a financial crisis, will create synergies for both agencies,” the AMF says in a newsl release.
Additionally, the arrangement is expected to help inspire confidence in the stability and soundness of Quebec’s financial system, and help fulfill a recommendation from the International Monetary Fund regarding systemic risk and co-operation between federal and provincial authorities.
“We are pleased to sign this agreement, which is an important collaborative tool to manage systemic risk related to D-SIFIs such as Desjardins Group,” says Louis Morisset, president and CEO of the AMF, in a statement.
“The agreement is consistent with actions taken by the AMF to achieve its risk management objectives. This is a significant development that will help us prevent and deal with the potential failure of a D-SIFI and strengthen ties with the main members of our financial safety net, namely, the agencies that perform the functions of prudential regulation, supervision, resolution, lender of last resort and deposit insurance,” he adds.