EBA strengthens supervision for third-country branches with new standards
The European Banking Authority (EBA) has published final draft Regulatory Technical Standards (RTS) to enhance supervisory cooperation for third-country branches. These standards improve information exchange and collaboration among EU competent authorities, ensuring comprehensive oversight of third-country groups.
Enhanced Oversight for Key Branches
These final draft RTS build on existing supervisory experience in information exchange and the functioning of colleges for credit institutions.
They detail the establishment and function of colleges for Class 1 third-country branches, covering coordination of supervisory activities in both normal and emergency situations.
An annex provides a mapping template to help authorities determine when a college is required under the Capital Requirements Directive (CRD).
Information Exchange for Other Branches
For other third-country branches where a college of supervisors is not required, the RTS outline how authorities should cooperate and exchange information.
This facilitates supervisory tasks in going concern and emergency situations, ensuring effective oversight across all third-country group activities within the Union.
The new regime, introduced by Directive (EU) 2024/1619, establishes a minimum harmonisation framework for authorisation, prudential requirements, and supervisory practices.