Based on a recently released EBA report on the treatment of incoming third country branches (TCBs), the Commission will include new provisions governing third country branches in its Basel III implementing proposal which is expected for October 27. The American Chamber of Commerce to the European Union (AmCham EU), the Bank Policy Institute (BPI), the Japanese Bankers Association (JBA), and the Swiss Finance Council (SFC) have jointly signed a letter addressed to Commissioner Mairead McGuinness and to the EBA Chairman José Manuel Campa in order to recall the economic benefit of third country branches in the EU and express their concerns in relation to subsidiarisation requirements.
At the same time the signatories point out that they understand the rationale behind the EBA’s work, in particular the desire to address divergences in regulatory and supervisory approaches across Member States. Proportionate supervisory and/or regulatory measures aimed at ensuring supervisory visibility of branch activities and risks should be pursued before exploring structural measures which could negatively impact funding for businesses and the European economy.
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