Global banking regulators and international accounting standards setters on Tuesday announced an agreement designed to enhance their co-operation and bolster the stability of the global financial system.

The Basel Committee on Banking Supervision (BCBS) and the IFRS Foundation have signed a memorandum of understanding (MOU) that aims to enhance co-operation in their work developing capital rules for global banks, and designing international financial reporting standards (IFRS), while also enhancing how these regimes work together.

The MOU is intended to “foster long-term financial stability, enhance market discipline and further develop sharing of information,” the organizations say in their announcement.

“There is a real desire for international organizations to be more joined up when developing standards for global finance. This agreement will help achieve that by strengthening and formalizing the already high levels of cooperation between the IFRS Foundation and the Basel Committee,” says Michel Prada, chairman of the IFRS Foundation trustees, in a statement.