The Dubai Financial Services Authority (DFSA) has signed a memorandum of understanding (MoU) with the China Banking Regulatory Commission (CBRC).

The signing took place between CEO of DFSA David Knott and chairman of CBRC Liu Mingkang at the offices of the commission in Beijing.

The CBRC supervises all banking institutions including banks, non-bank financial institutions and foreign banks with the aim of promoting the safety and soundness of the banking industry, said an official spokesman.

This is to maintain public confidence in the banking industry, encourage fair competition in the banking industry and to improve its competitiveness in the People's Republic of China.

'I am honoured to be meeting chairman Liu Mingkang and am pleased that the China Banking Regulatory Commission and the Dubai Financial Services Authority have now put in place these arrangements for co-operation and information sharing between banking supervisors,' said Knot.

This MoU follows the model for information sharing developed by the Basel Committee on Banking Supervision. It reflects each agency's commitment to co-operation in relation to prudential oversight and inspections and thereby, facilitates the expansion of a number of significant banks from the People's Republic of China into the DIFC. -TradeArabia News Service