The Dubai Financial Services Authority (DFSA) has entered into a supplementary agreement on co-operation with the China Banking Regulatory Commission (CBRC).

The CBRC supervises all banks and non-bank financial institutions, including foreign and foreign invested financial institutions and offices, with the aim of safeguarding legitimate and sound functioning of the banking industry in China. 

The signing took place during a meeting between CBRC chairman Shang Fulin and DFSA board chairman Saeb Eigner, and coincided with a visit to Beijing by a DFSA delegation attending the 2012 Annual Conference of the International Organisation of Securities Commissions.

The delegation included DFSA board m Robert Owen; chief executive Paul M Koster; and the chief executive designate Ian Johnston.

Koster said: “This initiative confirms a close and effective relationship between our two authorities. It grew from the response to the global financial crisis by the Basel Committee on Banking Supervision, which issued specific guidelines to enhance cross-border co-operation on crisis management. As active participants in the work of the Basel Committee, the CBRC and DFSA have entered into this agreement conscious of the need to implement international best practice and the commitment to ensure efficient and effective supervision of banks we both supervise.”

Eigner said: “I am very pleased that the CBRC and the DFSA have, with this supplementary agreement, enhanced the terms of the Memorandum of Understanding we put in place on 24 September 2007. Together with the existing MoU, today’s agreement reflects each agency’s commitment to co-operation in relation to prudential oversight and inspections in all situations and should ensure continued supervisory confidence as a number of significant banks from the People’s Republic of China enter the Dubai International Financial Centre.”  - TradeArabia News Service