Financial integration in Europe is increasing. The emergence of large, cross-border banks poses new challenges to the authorities. The management of financial crises in such banks will involve a number of authorities in many countries. Conflicts of interest between the authorities in different countries may hinder effective crisis solutions. Crisis management agreements between supervisory authorities and central banks aim to clarify the division of responsibilities and facilitate the exchange of relevant information. The Nordic central bank governors signed an agreement in 2003. This article provides an overview of developments and discusses the challenges facing the authorities
