The European Banking Authority (EBA) has taken a definitive step to streamline financial reporting for third-country bank branches operating within the EU by publishing final Regulatory Technical Standards (RTS) on booking arrangements. Released on January 9, 2026, this move primarily targets third-country credit institutions, national competent supervisory authorities, and EU financial market regulators, setting the stage for potential operational and compliance shifts in cross-border banking. Financial institutions are poised to navigate new record-keeping stipulations, while supervisors anticipate enhanced consistency in oversight.
This update emanates from the EBA, the EU's dedicated authority for banking regulation and supervision, and reflects its mandate under Article 48h of the Capital Requirements Directive (CRD). The published document is a press release conveying final draft regulatory technical standards, concluding the EBA’s technical specification phase. These standards respond to requirements introduced by Directive (EU) 2024/1619, which reformed the regulatory environment for third-country branches in the EU.
The document is a regulatory technical standard with binding effect, detailing concrete requirements rather than mere suggestions. It specifies precise methodologies and mandatory content for booking arrangements and registry maintenance. The RTS prescribe: (i) a defined bookkeeping method to identify and record assets and liabilities, including off-balance sheet items booked by third-country branches; (ii) the minimum required information content to ensure comprehensive and accurate tracking of such booked or originated items; and (iii) the maintenance of detailed risk-related data and risk management information tied to branch activities.
These standards mark an increase in supervisory harmonization and transparency, extending the regulatory reach over third-country branches. They strengthen the documentation and risk disclosure obligations incumbent on such branches, thus enhancing regulatory convergence at the EU level while diminishing divergent national practices. This move prioritizes financial stability and supervisory clarity over the operational flexibility that third-country branches might currently experience.
Stakeholders impacted include third-country credit institutions, who will face increased administrative burdens and compliance costs to meet the registry and booking requirements. National competent authorities and EU regulators benefit from more consistent, reliable data, improving their supervisory capabilities. EU consumers indirectly gain from stronger oversight contributing to overall financial stability, while the potential complexity and costs for institutions could influence their market strategies and competitive positioning.
This publication signals the near completion of the EBA’s drafting process for this regulation, with the next steps focusing on review and formal adoption by the European Commission. The Commission’s reaction and the subsequent implementation phase will shape the practical rollout timeline. Other EU institutions and stakeholders will likely engage through consultations or regulatory updates as the standards are embedded into national frameworks.
← Atlas › News › Economy & Taxation