IFRS Foundation signed a memorandum of understanding with the Basel Committee on Banking Supervision. The purpose of signing such a document is to ensure financial stability, improve discipline in the financial services market and improve the processes of disseminating information for market participants.
It should be reminded that the Basel Committee on Banking Supervision is the main regulator of European financial services markets.
The memorandum of understanding focuses on the correct application of international financial reporting standards by financial institutions and their compliance with the requirements of the Basle Committee on Banking Supervision. In addition, the document provides for the provision of recommendations to financial institutions for the conduct of their activities within the regulatory framework.
Michael Prada, IFRS Foundation Board Member, said: “The international organizations that are involved in financial markets prefer to work together and be guided by unified standards in their work. This guarantees the transparency of our activities. A signed memorandum between our organizations is an important step in this direction as this document broadens and formalizes the relationship between the IFRS Foundation and the Basel Committee on Banking Supervision”.