European Banking Authority publishes final Guidelines for authorising third country branches under CRD6

The European Banking Authority has published final Guidelines on the authorisation of third-country credit institutions seeking to establish a third-country branch in an EU member state under the new Capital Requirements Directive regime. The Guidelines set a harmonised framework for what must be included in an application, how supervisors should assess it, and which forms and templates should be used, with the aim of standardising access to the EU market for core banking services. The framework covers information on the proposed branch’s programme of operations, including its business plan, capital endowment, liquidity, internal governance, booking arrangements and reporting, as well as information on the third-country head undertaking and its prudential compliance. A key requirement is a non-opposition statement from the supervisor of the third-country head undertaking, reflecting the EBA’s emphasis on the safety and soundness of branches that do not have separate legal personality from their parent. The Guidelines also clarify when competent authorities may rely on information submitted in earlier branch authorisation procedures, and they reinforce the territorial nature of a branch authorisation, with limited exceptions for intragroup funding arrangements and reverse solicitation. The Guidelines will be translated into the official EU languages and then published on the EBA website. Competent authorities will have two months after publication of the translations to report whether they comply, and the Guidelines will apply from 11 January 2027.