March 8, 2018
Contact: Richard Loconte, 212-709-1691
New York State Department of Financial Services and The Bank of Israel Sign Memorandum of Understanding
Agreement Will Ensure Supervisory Cooperation and Exchange of Supervisory Information
Financial Services Superintendent Maria T. Vullo and the Supervisor of Banks at the Bank of Israel, Dr. Hedva Ber, today announced that they have signed an agreement of understanding and cooperation between the two authorities. 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.
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.”
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.”
This memorandum of understanding 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. DFS also supervises and regulates 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, over 1,100 property/casualty insurance companies, approximately 100 health insurers and managed care organizations, and over 300,000 insurance licensees.