July 20, 2022

EU and U.S. Regulators Highlight Scope of Cross-Border Coordination and Cooperation

Steven Lofchie Commentary by Steven Lofchie

Participants in an EU-U.S. Joint Financial Regulatory Forum highlighted cross-border interagency coordination on (i) financial stability, (ii) climate-related financial risks, (iii) banking and insurance regulation and supervision, (iv) capital markets, (v) operational resilience, (vi) digital finance and (vii) AML/CFT compliance.

EU participants included the European Banking Authority, the European Securities and Markets Authority, the European Insurance and Occupational Pensions Authority, the European Central Bank and the Single Resolution Board. U.S. participants included Treasury, the Federal Reserve Board, the CFTC, the FDIC, the OCC, the SEC and the Public Company Accounting Oversight Board.

In a joint statement, participants asserted that despite high levels of market volatility caused by current geopolitical events, financial markets have been resilient and remained relatively stable in large part due to international coordination. The joint statement also touted cooperative efforts on climate-related financial risk.

Commentary

The Forum appears to have focused more on climate-related financial risk than on inflation or other economic issues, which have been the more traditional concerns of Treasury and the Federal Reserve Board.

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