The European Banking Authority has issued final guidelines on eligible instruments and operational conditions for capital endowment requirements of third-country branches under the CRD.
The European Banking Authority (EBA) has published its final Guidelines on instruments for the capital endowment requirement for third-country branches under the Capital Requirements Directive (CRD).
The Guidelines specify the list of instruments that third-country branches may use to meet their capital endowment requirement and set minimum operational conditions to ensure these instruments are available when needed.
The objective is to ensure that capital endowment assets protect local depositors or remain available to satisfy local creditors in case of resolution or winding-up of the third-country branch.
Eligible instruments include those issued or guaranteed by central, regional, or local governments, central banks, public sector entities, multilateral development banks, or international organizations that would receive a 0% risk weight under the standardised approach for credit risk.
The Guidelines also clarify the operational conditions that third-country branches must meet to ensure the effectiveness and availability of these instruments during resolution or winding-up.
Legal basis: Article 48e(2) and 48e(4) of Directive 2013/36/EU. The Guidelines follow a public consultation conducted in 2025, aiming to support the consistent implementation of the new third-country branch regime introduced by the CRD.
