This staff paper discusses the heightened importance of coordination among an internationally active bank’s supervisors during the COVID-19 pandemic and suggests opportunities to continue enhancing supervisory coordination through the crisis and the recovery phase.
Supervisory mechanisms and relationships have been operating throughout the pandemic. Nevertheless, it is possible for fragmentation pressures to emerge during stress situations such as the COVID-19 pandemic, which is a global shock with an uncertain medium- and long-term impact.
Modern global supervisory frameworks are designed to mitigate tensions in the inherently complex relationship between home and host authorities. There may be opportunities to continue enhancing supervisory cooperation to boost efficiency, coordination and certainty for internationally active banks and their supervisors and, ultimately, to support the global economy through the pandemic and the recovery phase.