The EBA publishes its final draft technical standards to strengthen supervisory cooperation for third-country branches

The European Banking Authority (EBA) today published its final draft Regulatory Technical Standards (RTS) on cooperation and colleges of supervisors for third country-branches. These standards are designed to enhance collaboration and information exchange among competent authorities supervising third-country branches in the EU. They also set out practical arrangements for organising colleges of supervisors, ensuring comprehensive supervision of all activities conducted by third-country groups within the Union.

These final draft RTS build on supervisory experience in information exchange and the functioning of colleges for credit institutions. They are specifically tailored to the supervision of third-country branches, embedding the principle of proportionality. The standards focus on two key areas:

• Colleges of supervisors for class 1 third-country branches: the RTS detail how colleges should be established and function, including 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).
• Cooperation outside the college context: for other third-country branches a college of supervisors is not needed, the RTS outline how authorities should cooperate and exchange information to facilitate their supervisory tasks in going concern and emergency situations.

Legal basis and background

These draft RTS have been developed in accordance with Article 48p(7) of Directive 2013/36/EU to specify the effective cooperation and exchange of information between competent authorities supervising institutions and branches of the same third-country group and the conditions for the functioning of colleges of supervisors for class 1 third country branches.

Directive (EU) 2024/1619, amending Directive 2013/36/EU, introduces a new regime for branches of third-country credit institutions operating in the EU (third country branches or TCBs). This regime establishes a minimum harmonisation framework for authorisation, prudential requirements – including booking arrangements, capital endowment, liquidity, internal governance, common reporting requirements - and supervisory practices and cooperation. 

The RTS are part of phase 2 of the EBA’s roadmap for implementing the EU Banking Package mandates on market access. Their objective is to strengthen cooperation and information sharing among authorities supervising third-country branches in the EU.