EU: EBA consultation on third-country branches under the Capital Requirements Directive (CRD)

 

The European Banking Authority (EBA) has recently launched three public consultations on Regulatory Technical Standards (RTS) and Guidelines (GL) concerning third-country branches under the Capital Requirements Directive (CRD). These consultations address key areas including booking arrangements, capital endowment, and supervisory colleges. The proposed measures aim to ensure consistent and harmonised implementation of the new EU regulatory framework for third-country branches, improve comparability across Member States, and enhance supervisory cooperation. The consultations are open until 10 October 2025.

• The draft RTS on booking arrangements set out a methodology for identifying and recording the assets, liabilities, and off-balance sheet items booked or originated by third-country branches. They also define the minimum content required in the registry book and specify the information on risks that must be retained. These standards seek to harmonise practices across third-country branches in how booking arrangements are implemented and registry books are maintained.
• The draft Guidelines on capital endowment instruments list the eligible instruments that third-country branches may use to meet their capital endowment requirements—beyond cash and debt securities issued by EU central governments or central banks. The Guidelines also define the minimum operational conditions to ensure that such instruments effectively serve their intended purpose.
• The draft RTS on supervisory cooperation are designed to support competent authorities in exchanging information and coordinating their actions regarding third-country branches, both under normal conditions and in crisis situations. They also outline practical arrangements for establishing colleges of supervisors to ensure the entire EU presence of third-country banking groups is subject to thorough and coordinated supervision.