The China Banking Regulatory Commission (CBRC) and the Icelandic Financial Supervisory Authority (FME) has signed a memorandum of understanding to improve cooperation on inter-bank supervision, according to a statement from the CBRC on Thursday.

Both regulators agreed to strengthen cooperation on information exchange, market entry and on-site inspections, said the statement.

Through better communication with foreign counterparts, the CBRC would keep closer watch on the business performance of the overseas branches of domestic financial institutions, said CBRC sources.

The MOU was initiated by the operation of Glitnir Bank in China, according to a news release posted on the FME website.

"So far, only one Icelandic company, Glitnir Bank, has established an entity in China," said Jonas Fr. Jonsson, general director of FME during the visit of CBRC chairman Liu Mingkang and its delegation on June 11.

Glitnir, a leading Nordic bank headquartered in Iceland, opened its first Asian representative office in Shanghai last December.

To date, China has signed supervisory MOUs or bilateral agreements with 26 countries and regions including the United States, Canada and Germany.

Source: Xinhua