The Australian and New Zealand central banks will consult and co-operate with each other over issues related to cross-border clearing organisations.In a joint statement issued yesterday the Reserve Bank of Australia and the Reserve Bank of New Zealand announced that they had signed a memorandum of understanding, which they described as "a statement of intent to consult, co-operate and exchange information in connection with each of the authority's respective functions relating to covered clearing organisation."A covered clearing organisation is a company that operates a clearing and settlement facility.The MOU has no legally binding obligations and it will operate through ongoing informal consultations.Consultation will cover pending regulatory changes, events that could adversely affect the stability of an organisation and any steps being taken to address such events.The joint statement said: "The authorities recognise in particular the importance of close co-operation in the event that a covered clearing organisation experiences or is threatened by a potential financial crisis or other emergency situation."