EBA final draft RTS for third-country branches under CRD VI

The European Banking Authority (EBA) has published two final draft RTS under the Capital Requirements Directive 2013/36 (CRD IV), as amended by Directive 2024/1619 (CRD VI), relating to the regulatory requirements for third-country branches (TCBs). The RTS relate to: (i) cooperation and colleges of supervisors for TCBs; and (ii) the booking arrangements that TCBs are to apply. The revised drafts consider feedback from the July consultations, in particular:

• The draft RTS on supervisory cooperation contains a revised Article 14 on the information to be exchanged on the supervisory review and evaluation process (SREP). The elements of information to be exchanged are linked to the relevant provisions of CRD in order to accommodate future developments at the level of the SREP Guidelines (a revised version of which is currently under consultation).
• In respect of the RTS on booking arrangements, two amendments were made in response to concerns about operational challenges: (i) the obligation to implement systems separate from the head undertaking has been removed and the text now simply requires branches to "maintain systems", and (ii) the requirement to record originated assets and liabilities where a transfer of risks, rewards or obligations has occurred to an entity outside the group is limited to the reporting period of the reporting year that the transfer of risk has occurred. The value to be reported should be the carrying amount as at the transfer date.

The RTS will now be submitted to the European Commission for endorsement, after which they will be subject to scrutiny by the European Parliament and the Council of the EU.

Return to main website.