National Financial Stability Committee

With a view to fostering cooperation mechanisms to strengthen financial stability at national level, a memorandum of understanding was signed in 2007 between the Ministry of Finance and Public Administration and the supervisory authorities of the financial sector - Banco de Portugal, Instituto de Seguros de Portugal - ISP (Portuguese Insurance Institute), Comissão do Mercado de Valores Mobiliários - CMVM (Securities Market Commission) - which establishes the Comité Nacional para a Estabilidade Financeira - CNEF (National Financial Stability Committee).

CNEF, which is comprised of high level representatives from those entities, promotes the regular exchange of information at times when financial systems and markets are operating smoothly, addressing issues such as financial stability prospects at national and international level, instruments for financial crisis prevention and management, and relevant developments in international cooperation mechanisms, particularly in the European Union.

In potential crisis situations, entities also exchange information, addressing issues such as potential systemic implications for the Portuguese financial system, channels for contagion to institutions or groups (including conglomerates), possible economic implications of the crisis, or difficulties in implementing crisis management measures.