The European Banking Authority (EBA) today published its final Regulatory Technical Standards (RTS) specifying the booking arrangements that third-country branches must apply under the Capital Requirements Directive (CRD). The standards deliver clarity and harmonisation in the implementation of booking arrangements and the maintenance of a registry book, supporting consistent supervisory practices across the EU.
The RTS establish requirements in three core areas:
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Bookkeeping methodology: the RTS define the approach for identifying and recording assets and liabilities booked or originated by the third-country branch, including off-balance sheet items.
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Minimum required content: the RTS specify the minimum information necessary to keep a comprehensive and precise track record of booked or originated assets and liabilities.
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Risk-related information: the RTS detail the risk data and associated risk management measures that must be maintained in the registry book for the activities of the branch.
Legal basis and background
Article 48h of Directive 2013/36/EU (Capital Requirements Directive - CRD), mandates the EBA to develop draft RTS to specify the booking arrangements that third-country branches are to apply and the methodology to identify and keep a track record of the assets and liabilities booked or originated in a Member State.
Directive (EU) 2024/1619, amending Directive 2013/36/EU, introduces a new regime applicable to branches in the EU of third country credit institutions (third-country branches). This regime sets a minimum harmonisation framework covering authorisation, prudential requirements – including booking arrangements, capital endowment, liquidity, internal governance, common reporting requirements - and supervisory practices.
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Draft Regulatory Technical Standards on booking arrangements
