sk sk

Letter of Cooperation of 27 August 2002

Washington, DC 20219

August 27, 2002

Mr. Milan Horvath
Executive Director
Banking Supervision Division
National Bank of Slovakia

Dear Mr. Horvath:

As generally set forth in your letter of June 3, 2002, it would be mutually beneficial for the Office of the Comptroller of the Currency (OCC) and the National Bank of Slovakia (NBS) to work closely and cooperatively in the supervision of cross-border establishments of banks and banking organizations incorporated in the United States and Slovakia, insofar as they are subject to supervision by the OCC or NBS. This letter confirms the interest of the OCC in furthering comprehensive consolidated supervision through enhancing supervisory cooperation between the OCC and the NBS, subject to the commitments discussed below.

In connection with the ongoing supervision of cross-border establishments, we would endeavor to notify the NBS and provide relevant information regarding any material developments or supervisory concerns with respect to the U. S. operations of any Slovak bank or banking organization. The OCC also endeavor to inform the NBS, to the extent reasonable, about any event that has the potential to endanger the stability of the Slovak operations of national banks and banking organizations. If administrative penalties are imposed on, or any other enforcement action taken against, a U. S. establishment of a Slovak bank, the OCC would inform the NBS. Moreover, we would advise the NBS of such penalties or actions imposed on banks and banking organizations with operations in Slovakia if the OCC considers such information significant in relation to the Slovak operations.

One applicable law, the International Banking Act (IBA), permits us to disclose supervisory information to any foreign bank regulatory or supervisory authority if we determine that the disclosure is appropriate and will not prejudice the interests of the United States. The IBA requires that the foreign supervisor must also agree to maintain the confidentiality of the information to the extent permitted by law. See 12 U. S. C. 3109. We agree to inform you of any substantive changes in this law or the OCC’s  authority to share supervisory information with foreign supervisors or ability to maintain the confidentiality of supervisory information received from foreign supervisors.

To the extent permitted by law, we will share information on a  reciprocal basis, subject to the requirements of 12 U. S. C 3109 and the commitment you have made to maintain confidentiality of the information we provide to you. In addition, we agree to maintain confidentiality of the information received from you, to the extent permitted by law, and would not disclose this information other than as necessary to carry out lawful supervisory responsibilities.

Assuming that you have no objection, the exchange of information between the OCC and the NBS will be subject t to several commitments that have been included in most information-sharing arrangements between the OCC and foreign bank supervisors. These commitments, which pertain to the disclosure of shared information to third parties, are as follows. If the OCC or NBS receives a  request for shared information, but disclosure is not legally compelled or necessary to carry out the supervisor’s lawful supervisory responsibilities, the supervisor receiving the request would consult and obtain the prior consent from the supervisor that originated the information to release it. If a supervisor is legally compelled to disclose shared information, that supervisor would cooperate with the supervisor that originated the information in seeking to preserve the confidentiality of the information, to the extent permitted law. In all cases of disclosure to third parties, to the extent permitted by law, the supervisor disclosing the information would notify the supervisor that originated the information of the disclosure.

Finally, we also intend to enhance cooperation between us by meeting, as appropriate, and responding to requests for information on any aspect of our national bank regulatory system.

We look forward to enhance supervisory cooperation between the OCC and the NBS.


Jonathan L. Fiechter
Senior Deputy Comptroller
International and Economic Affairs