The European Banking Authority has published final Guidelines on which instruments third-country branches can use to meet the Capital Requirements Directive capital endowment requirement, along with minimum operational conditions to ensure these assets are available when needed. The measures are intended to ensure capital endowment assets protect local depositors at branch level and remain available to meet claims and satisfy local creditors in resolution or winding-up. Eligibility is limited to financial instruments issued or guaranteed by central, regional or local governments, central banks, public sector entities, multilateral development banks or international organisations that would receive a 0% risk weight under the standardised approach for credit risk. The Guidelines also set minimum operational conditions to ensure the instruments are available to the third-country branch for unrestricted and immediate use to absorb risks or losses, including in resolution or winding-up. The final Guidelines implement the mandate in Article 48e(4) of Directive 2013/36/EU, building on the 2025 public consultation, and are marked as final and awaiting translation into the EU official languages.
European Banking Authority 2026-03-02
European Banking Authority finalises guidelines on eligible 0% risk-weighted instruments for third-country branch capital endowment
The European Banking Authority issued final Guidelines on instruments third-country branches can use to meet the Capital Requirements Directive capital endowment requirement, ensuring assets protect local depositors and satisfy local creditors. Eligibility is restricted to financial instruments with a 0% risk weight under the standardised approach for credit risk. The Guidelines also establish minimum operational conditions for the unrestricted and immediate use of these instruments.