Memorandum of Cooperation on Trans-Tasman Bank Distress Management
The purpose of this Memorandum of Cooperation (henceforth Memorandum) is to assist the participants in achieving a coordinated response to financial distress in any bank or banking group that has significant operations in Australia and New Zealand (referred to as a "trans-Tasman bank") in a manner that avoids, where practicable, instability in the financial systems of Australia and New Zealand and promotes an effective resolution of the bank's financial distress. The Memorandum does not pre-commit to, or rule out, any particular resolution option.
The Memorandum sets out principles to which the participants will have regard in the decisions they take, and in the advice they will provide to the Australian and New Zealand Governments, when faced with financial distress in a trans-Tasman bank. As such it is not intended to bind the Australian or New Zealand Governments in any way. Rather, the Memorandum provides a broad framework to promote and facilitate a coordinated response by the participants to a trans-Tasman banking crisis, and to allocate responsibility for particular elements of the response.
The Memorandum is not governed by international law and does not create legal relations between the participants to the Memorandum.