01 November 2017

EBA publishes final guidance on supervision of significant branches

In particular, these Guidelines will facilitate cooperation and coordination of supervision of the largest and systemically important branches, the so-called ‘significant-plus' branches.

The final Guidelines provide a framework for the identification of ‘significant-plus' branches through a common assessment carried out by home and host Competent Authorities of the branches' relevance to the institution or the financial stability in the host Member State.  

Furthermore, the final Guidelines outline a coordinated approach to their supervision and the assessment of recovery planning facilitated through the framework of colleges of supervisors. In particular, the final Guidelines propose a set of principles that Competent Authorities should comply with in the performance of risk assessments of the institution  having such ‘significant-plus' branches, such as exchange of supervisory intelligence and information, planning of supervisory activities, on-the-spot checks and inspections, application of supervisory and precautionary measures and allocation of tasks between authorities.

These final 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 for effective and efficient cooperation within colleges of supervisors when exercising those tasks and discharging those responsibilities. In addition, these Guidelines do not limit in any form the freedom of institutions to establish branches in other Member States, nor they create additional obligations to institutions in terms of Internal Capital Adequacy Assessment Process (ICAAP) and Internal Liquidity Adequacy Assessment Process (ILAAP) or reporting.

Press release

Report on guidelines

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