It explained that: "In order to enhance procedures for co-operation and preparedness of authorities in the EU, the Ecofin Roadmap on financial stability of 9th October 2007 invited the Economic and Finance Committee to prepare a proposal for an extended Memorandum of Understanding (MoU) for presentation to the informal Ecofin meeting on 4-5 April 2008."

"The extended MoU builds on and replaces the EU MoU signed in 2005 between Heads of Competent Banking Supervisory Authorities, Central Bank Governors and Finance Ministers in the EU."

And continued: "The MoU sets out practical arrangements aimed at strengthening co-operation between authorities through out Europe for the maintenance of financial stability."

"It includes common principles, a common framework and common practical guidelines to facilitate the management and resolution of financial stability issues that might arise on a cross-border basis in the EU."

"Where appropriate, the MoU provides that co-operation at a cross-border level can be enhanced by the establishment of Cross-Border Stability Groups to focus on the issues relating to issues in specific firms, markets or infrastructures that are significant for all members of the group."

The Irish authorities that are parties to the MoU are the Department of Finance, the Central Bank and Financial Services Authority of Ireland, the Financial Regulator, and the Pensions Board.