EBA consults on supervision of significant branches

20 December 2016

The European Banking Authority (EBA) launched today a consultation on its draft Guidelines on the supervision of significant branches. Prompted by the increasing demand to establish branches across the European Union, these Guidelines are designed to facilitate cooperation and coordination between the Competent Authorities (CAs). They will assist them in supervising the largest systemically important branches, the so-called "significant-plus" branches, which require intensified supervision. The consultation runs until 20 March 2017.
The draft Guidelines provide a framework for the identification of ‘significant-plus' branches and outlines a coordinated approach to their supervision and the assessment of recovery planning facilitated through the framework of colleges of supervisors. In particular, the draft Guidelines propose a set of principles that Competent Authorities should comply with in the performance of risk assessments, exchange of supervisory intelligence and information, planning of supervisory activities, carrying out on-the-spot checks and inspections, application of supervisory and precautionary measures and allocation of tasks between authorities.
These draft Guidelines do not interfere with the tasks and responsibilities conferred on the consolidating supervisor and the home and host Competent Authorities by the Capital Requirements Directive (CRD) and Bank Recovery and Resolution Directive (BRRD), and merely aim at establishing a framework of effective and efficient cooperation within colleges of supervisors when exercising those tasks and discharging those responsibilities. In addition, these draft Guidelines do not limit in any form the freedom of institutions to establish branches in other Member States.

Consultation process

Responses to this consultation can be sent to the EBA by clicking on the ‘send your comments' button on the website.
All contributions received will be published following the close of the consultation, unless requested otherwise. Please note that the deadline for the submission of comments is 20 March 2017.
A public hearing will take place at the EBA premises on 17 February 2017 from 10:00 to 13:00 UK time. 

Legal basis and background

The EBA has drafted these Guidelines on its own initiative in accordance with Article 16 of Regulation (EU) No 1093/2010. The draft Guidelines elaborate on the existing legal frameworks established by the CRD, the BRRD and the EBA technical standards. These guidelines specify, on the basis of Article 21 of Regulation (EU) 1093/2010 , how the consolidating  supervisor, the home and the host Competent Authorities should, within the framework of colleges of supervisors established either under Article 116 or under Article 51 (3) of the CRD , cooperate to prudentially supervise and coordinate the exercise of their powers in regard to the supervision and assessment of recovery planning in relation to significant branches.
These draft Guidelines apply only in relation to those significant branches referred to in Article 51 of the CRD whose intensification test performed in accordance with Section 4.2 of the draft Guidelines results in them being deemed ‘significant-plus' branches for the purpose of these draft Guidelines.  

Press contacts

Franca Rosa Congiu

press@eba.europa.eu | +33 1 86 52 7052 | Follow @EBA_News