The European Banking Authority (EBA) this week announced the launch of three public consultations focused on developing new regulatory technical standards and guidelines governing third-country branches operating within the European Union.

The consultations aim to harmonise the implementation of the updated EU framework for third-country branches, known as TCBs, which has been introduced under the amended Capital Requirements Directive.

The new regime is part of Directive (EU) 2024/1619, which updates Directive 2013/36/EU to create a minimum harmonisation framework across member states for authorisation, prudential oversight, governance, liquidity, capital, and supervision of third-country credit institutions operating in the EU.

The draft regulatory technical standards (RTS) and guidelines (GL) cover three main areas: booking arrangements, capital endowment, and cooperation between supervisory authorities through colleges.

“The objective is to ensure a consistent and comparable application of the rules across member states while strengthening supervisory cooperation,” the EBA said in a statement.

The first consultation focuses on the draft RTS for booking arrangements.

These lay down the methodology to identify and record assets and liabilities booked or originated by a third-country branch, including off-balance sheet items.

They also specify the minimum content required for the registry book that each TCB must maintain, along with details on the risks that must be recorded.

The EBA said the new requirements aim to ensure convergence in how TCBs implement and maintain booking arrangements.

The second consultation involves draft guidelines on instruments for capital endowment.

These include the list of eligible instruments that TCBs may use, beyond cash and government or central bank debt securities, to meet their capital endowment obligations.

The guidelines also outline the minimum operational conditions that must be met to ensure these instruments are fit for purpose in resolution or wind-down scenarios.

The third consultation concerns draft RTS on cooperation among supervisory authorities responsible for overseeing TCBs.

These rules are designed to facilitate efficient coordination and information exchange in both going-concern and emergency situations.

They further provide guidance on how to organise colleges of supervisors for third-country branches, ensuring comprehensive supervision of all activities of the third-country group within the union.

The legal basis for these new standards is laid out in Articles 48h, 48e, and 48p(7) of Directive 2013/36/EU.

These articles require TCBs to maintain a registry book, to hold sufficient capital in escrow at all times, and to be subject to enhanced supervisory cooperation where they form part of a broader group.

All stakeholders are invited to submit comments via the EBA website, with the deadline set for October 10, 2025.

The EBA has confirmed that all contributions will be published after the close of the consultation period, unless anonymity is explicitly requested.

A public hearing on all three sets of regulatory proposals will be held on September 3, 2025, from 10:00 to 12:00 Central European Summer Time. The deadline for registration is September 1, 2025, at 12:00 CEST.

The EBA mentioned that the updated guidelines on internal governance and the Supervisory Review and Evaluation Process (SREP) will also include a dedicated section addressing specific aspects related to third-country branches.

These developments form part of the EU’s broader efforts to improve the oversight and resilience of foreign banks operating within the union, particularly in light of growing interconnectedness in global finance.

The EBA said the consultations mark a key step toward strengthening trust, transparency, and consistency in cross-border banking supervision.