AMF heads another innovative initiative to adapt international standards for banks to financial cooperatives Français
MONTRÉAL, Dec. 14, 2021 /CNW Telbec/ - The Autorité des marchés financiers ("AMF") is pleased to announce that the International Association of Deposit Insurers ("IADI") today published the guidance paper Ways to Resolve a Financial Cooperative While Keeping the Cooperative Structure ("Guidance Paper").
Drafted by the IADI's Resolution Issues for Financial Cooperatives Technical Committee ("RIFCTC"), which has been chaired by the AMF since its creation in 2014, and based on a collaborative study of cases from multiple jurisdictions around the world, the Guidance Paper analyzes ways to resolve the difficulties faced by financial cooperatives while keeping the cooperative structure. Drawing on past experiences within participating jurisdictions, the RIFCTC has also developed general guidance points for deposit insurers in all jurisdictions and specific guidance points for deposit insurers in jurisdictions where financial cooperatives have an umbrella organization (a federation, for example) and an institutional protection/stabilization scheme enabling action to be taken within the group in respect of a failing financial cooperative.
"The Guidance Paper highlights observed international best practices, including the legal and legislative framework developed in Quebec. IADI members will be able to use it to develop or strengthen their resolution practices," said Louis Morisset, AMF President and CEO.
The Guidance Paper was drafted as part of a process that began with the publication in 2018 of a first research paper entitled Resolution Issues for Financial Cooperatives – Overview of Distinctive Features and Current Resolution Tools, which set out the underlying challenges involved in adapting bank resolution tools to financial cooperatives. Other publications will follow over the next three years, as the RIFCTC has received approval from the members of IADI's executive council to continue its work.
This work is being closely followed by key international organizations, including the Financial Stability Board and the International Monetary Fund.
About IADI
IADI, of which the AMF is a founding member, is a non-profit organization formed in 2002 and based in Basel, Switzerland. It currently represents over 86 deposit insurers and central banks worldwide.
The Autorité des marchés financiers is the regulatory and oversight body for Québec's financial sector.
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SOURCE Autorité des marchés financiers
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