The European Banking Authority (EBA) published today its final draft Regulatory Technical Standards (RTS) and Implementing Technical Standards (ITS) on information exchange between home and host competent authorities regarding branches and service providers. The draft Technical Standards do not introduce any direct reporting requirements, but propose a structured and consistent process in the provision of key supervisory information across the EU.

The standards specify the information that competent authorities shall exchange with each other according to Article 50 of the Capital Requirements Directive (CRD). In particular, they cover the following areas: management and ownership; liquidity and supervisory findings; solvency; deposit guarantee schemes; limitation of large exposures; internal control mechanisms. Furthermore, the draft RTS introduce some additional areas where competent authorities shall exchange information, such as leverage, general non-compliance, supervisory measures and sanctions, and preparation for emergency situations.

The EBA finalised these draft RTS and ITS after they were launched for public consultation in October 2013 and no comments were received.

The draft ITS outline operational procedures and set out standard forms and templates for information sharing requirements, which are likely to facilitate the monitoring of institutions that operate through a branch or through the exercise of the freedom to provide services.  The draft ITS set out the procedures for information exchange during (i) going concern  and (ii) liquidity stress situations and is supplemented by two annexes containing templates for the information exchange. The quantity and frequency of information to be provided is based on the proportionality principle, depending on whether a branch is deemed as significant.

Legal basis and next steps

The draft RTS and ITS on information exchange between home and host competent authorities regarding branches and service providers have been developed in accordance with Article 50 of Directive 2013/36/EU (CRD).

The final standards have been sent today to the European Commission for their adoption as EU Regulations that will be directly applicable throughout the EU.