In case participation in Intra-Group Financial Support agreements by ”subsidiaries in third countries” is already allowed in national law, does Article 19 (1) of Directive 2014/59/EU (BRRD) still have be explicitly implemented?
Regarding Intra-Group Financial Support, would it be acceptable to consider the fact that currently ”subsidiaries in third countries” are already permitted (or not prohibited) to participate in Intra-Group Financial Support agreements as stated in Article 19 (1) of Directive 2014/59/EU (BRRD) as implementation of the latter article? As participation in Intra-Group Financial Support agreements by ”subsidiaries in third countries” is not prohibited Article 19 (1) of Directive 2014/59/EU (BRRD) does not require further implementation.
Further implementation is not required, if the effect of such implementation on the national law is that institutions will be able to enter in group financial support agreements with third country subsidiaries.
This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General Financial Stability, Financial Services and Capital Markets Union) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.
Update 26.03.2021: This Q&A has been reviewed in the light of the changes introduced to Directive 2014/59/EU (BRRD) and continues to be relevant.