China and Brazil sign banking supervision agreement

A new agreement improves government oversight of their banks in each country.

The China Banking Regulatory Commission, the banking sector regulator, and the Central Bank of Brazil have signed a letter of intent to improve exchange of information and increase cooperation on banking sector supervision.

The agreement signed in Rio de Janeiro recently will reinforce oversight of Brazilian financial institutions with branches, offices or subsidiaries in China and of Chinese banks operating in Brazil.

Brazil's central bank said the initiative is in accord with the recommendations of the Basel Banking Supervision Committee and would contribute to the consolidated global strengthening of supervision of banks operating in both countries.

Brazil and China also reached an agreement to create a US$30 billion swap line with their local currencies to facilitate trade and commerce.