EBA's Draft Regulatory Technical Standards Elaborate On Requirements For EU Branches Of Non-EU Banks

NEW BOOKING ARRANGEMENT REQUIREMENTS

The EBA highlights the importance of the booking arrangements to the whole TCB prudential framework; forming the basis of the classification of TCBs and consequently the intensity of the supervisory regime applicable to the TCB.

Article 48h of the Directive 2013/36 (CRD), as amended by CRD VI, requires TCBs to:

1. maintain a registry book to track and keep a comprehensive and precise record of all the assets and liabilities booked or originated by the TCBs in the Member State and to manage those assets and liabilities autonomously within the TCBs;

2. develop and regularly review and update a policy on booking arrangements for the management of the registry book referred to in 1, above. The policy must be documented and approved by the relevant governing body of the head undertaking and must provide a clear rationale for the booking arrangements and set out how those arrangements align with the TCB's business strategy; and