Regulatory Alerts2026-01-01
EBA Guidelines on instruments available for third country branches for unrestricted and immediate use to cover risks or losses
The European Banking Authority issues guidelines to specify eligible instruments and operational conditions for the minimum capital endowment requirement of third-country branches under Article 48e of Directive 2013/36/EU. The document mandates that these assets, held in escrow, must be unrestricted, immediately usable to cover risks, and consist primarily of high-quality debt securities with a 0% risk weight. These measures ensure segregated assets remain available to protect local depositors and creditors during the resolution or winding-up of the branch, with application starting in January 2027.
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