The Korea Deposit Insurance Corporation (KDIC) Chairman Yoo Jae-hoon, right, and the Federal Deposit Insurance Corporation (FDIC) Chairman Martin J. Gruenberg sign a MOU between the two institutions at FDIC Headquarters in Washington, DC., Tuesday, local time. Courtesy of KDIC
The Korea Deposit Insurance Corporation (KDIC) and the Federal Deposit Insurance Corporation (FDIC) have agreed to enhance mutual cooperation and strengthen information sharing between the two organizations. The FDIC is a U.S. government corporation that supplies deposit insurance to depositors in American commercial banks and savings banks.
KDIC Chairman Yoo Jae-hoon and FDIC Chairman Martin J. Gruenberg signed a Cross-border Resolution Memorandum of Understanding (MOU) and a Cooperative Arrangement (CA) at the headquarters of the FDIC in Washington D.C. on Tuesday, local time.
Under the MOU, the two institutions aim to exchange knowledge regarding risk monitoring and resolution planning for insolvencies for financial companies that operate in both countries. The CA emphasizes the strengthened mutual cooperation between the two parties.
The KDIC was keen to highlight that it is significant that it has established a mutual cooperative relationship with the financial resolution authorities of the U.S. and Europe, the two main regions where most foreign financial companies operating in Korea come from.
“It is very meaningful to discuss the improvement of the deposit insurance system with the FDIC, which has always played a leadership role in the global financial world, " KDIC Chairman Yoo said, adding that the signing of the agreements shows a strengthened partnership in the realm of finance between the two countries.
“Today’s signing of these documents is an important next step in the FDIC’s efforts to build meaningful partnerships with foreign counterparts through knowledge sharing and bolstering lines of communication and coordination,” said Chairman Gruenberg. “I thank Chairman Yoo for his longstanding commitment to this partnership and to financial stability.”
It is the KDIC's second time to formalize a partnership with overseas resolution authorities, since the agency signed a resolution-related cooperative agreement with the Single Resolution Board (SRB) in July last year.
The SRB is the central resolution authority within the European Banking Union, which includes 20 eurozone countries and Bulgaria, to ensure an orderly resolution of failing banks and to protect the taxpayer from state bail-outs.
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