On Wednesday 1 November, the European Banking Authority (EBA) published its final guidelines on the supervision of ‘significant-plus branches’ of banks of systemic importance to the EU.
The guidelines ‘specify how the consolidating supervisor, the home and host competent authorities should cooperate within the framework of supervisory colleges established under the Capital Requirements Directive – CRD.’
The guidelines lay down a number of principles that the authorities involved in surveillance should respect when assessing risks relating to the branches, viz: - intensive exchange of intelligence and prudential information; - ensuring coherent communication between the bank and its branch; - introducing controls and inspections in situ and coordinated application of surveillance and precautionary measures for the branch.
In order to ensure a good division of labour between the different authorities, the ECB suggests that a work allocation system be used within surveillance authorities and the option of delegating work should be examined.
The guidelines will start to apply from 1 January 2018 and can be found at: http://bit.ly/2lHQlCm (Original version in French by Marion Fontana)