Nordic Financial Crisis Simulation Exercise
During 2007 the finance ministries, the financial supervisors and the central banks of the Nordic and Baltic Countries will take part in a financial crisis simulation exercise. The purpose of the exercise is to test the authorities for the event of a cross border financial crisis. The focus of the exercise will be the coordination of decision making between organizations and countries, the Nordic/Baltic area being characterized by commercial banks conducting cross border business.
The exercise is exclusively a result of the participating authorities’ whishing to test their co-operation and coordination procedures. There are no particular events related to any specific institutions or to any of the Nordic/Baltic financial markets that has induced the execution of the exercise. Thus, neither the timing nor the contents of the exercise should be interpreted as an indication of changed financial stability assessments among the relevant authorities.
“The FME has conducted similar exercises here in Iceland in 2004 and 2006, in cooperation with the Central Bank of Iceland. This Nordic Financial Crisis Exercise however is a new approach and a clear example how international cooperation is become constantly more important in our day-to-day actives”, says Mr. Jónas Fr. Jónsson, Director General of the FME.