Agreement Will Ensure Supervisory Cooperation
and Exchange of Supervisory Information
The Supervisor of Banks at the Bank of Israel, Dr.
Hedva Ber, and Financial Services Superintendent Maria T. Vullo today announced
that an agreement of understandings and cooperation has been signed. The
Governor of the Bank of Israel, Dr. Karnit Flug, approved the signing of the
document.
The memorandum of understanding enhances and
strengthens cooperation between the two authorities, including the exchange of
information and assistance on supervisory matters. The agreement
sets out a process for the transfer of information between the
supervisory authorities and arranges the cooperation between the authorities
subject to the requirements of the law and confidentiality
considerations. The agreement also sets out cooperation and information
sharing in the event of suspicions of money laundering or terrorism financing.
Supervisor of Banks Dr. Hedva Ber said, “The Israeli
economy, including the banking system, is greatly affected by the global
economy, and it is very important to maintain international professional
dialogue and cooperation. I am pleased
to have the opportunity to share our experience and learn from the rich experience
of our colleagues abroad. We derive
great benefit from our close working relationships with major supervisory
authorities around the world, and we view the professional esteem for the
Banking Supervision Department in Israel as an important asset.”
Superintendent of Financial Services Maria T. Vullo
said, “As one of the most dynamic and interconnected financial capitals of the
world, New York serves consumers and regulated entities best when it is working
and sharing regulatory knowledge with fellow supervisory authorities. Sustained
success in global banking depends on international collaboration and effective
supervision to safeguard our financial markets. DFS fully supports our
colleagues in Israel and this agreement further highlights the imperative value
of cooperation on an international scale. DFS is pleased to further
strengthen our cooperation and work with The Bank of Israel to strengthen
protections of our markets and our mutual interest in combatting terrorism.”
This memorandum of understandings comes in addition to
previous memoranda signed by the Banking Supervision Department at the Bank of
Israel and supervisory authorities around the world in recent years: the Board
of Governors of the Federal Reserve System and the Federal Deposit Insurance
Corporation in the US, and the Reserve Bank of India.
DFS maintains numerous information sharing and
cooperation agreements or memoranda of understanding with regional supervisory
authorities for sharing information and global coordination, including, but not
limited to, the banking authorities in the UK, France, Germany, Netherlands,
Hong Kong, China, Canada, Brazil, Sweden, Taiwan. In September 2017,
Superintendent Vullo signed the Framework Cooperation Agreement among the
European Banking Authority and various U.S. Authorities, which lays out the foundation for cooperation on bank crisis
management and resolution among the EU Supervisory or Resolution Authorities
and the participating US authorities. New York is currently the only state that
is signatory to this agreement.
The Department of Financial Services (DFS) supervises
and regulates the activities of 84 foreign branches, 10 foreign agencies, and
27 representative offices in addition to 139 state chartered commercial banks,
savings banks and bank holding companies, 16 state chartered credit unions,
with assets totaling more than $1.8 trillion, as well as 380 licensed financial
services companies, and 7,600 mortgage loan originators and servicers. DFS
regulated entities also include more than 1,400 insurance companies with assets
of more than $4.3 trillion. DFS licensees include nearly 200 life insurance
companies, 1,100 property/casualty insurance companies, approximately 100
health insurers and managed care organizations, and 300,000 insurance
licensees.