On 13 May 2022, the European Banking Authority (EBA) adopted a decision on supervisory reporting for intermediate parent undertaking (IPU) threshold monitoring for those entities belonging to third country groups (TCGs), including third country branches (TCBs).

Article 21b of the Capital Requirements Directive IV (CRD IV) requires institutions belonging to TCGs to have an IPU established in the EU, where the TCG’s total value of assets in the EU, including held via TCBs established in the EU, is equal to or greater than EUR 40 billion. For this purpose, Article 21b(6) CRD IV requires Member State competent authorities (NCAs) to report to the EBA, for each TCG: (a) the names and the total value of assets of supervised institutions belonging to a third-country group; (b) the names and the total value of assets corresponding to branches authorised in that Member State in accordance with the CRD IV, the Markets in Financial Instruments Directive II, the Markets in Financial Instruments Regulation, and the types of activities that they are authorised to carry out; (c) the name and the type of any intermediate EU parent undertaking set up in their Member State and the name of the TCG of which it is part. In accordance with the EBA guidelines on the monitoring of the threshold and other procedural aspects on the establishment of IPUs under Article 21b of the CRD IV, the first reporting should occur by 30 June 2022.

The following annexes specify the ways in which the reports should be formatted:

  • Annex I: Describes the template data items and gives instructions on how to fill them in. It is also noted that this document should be read in conjunction with the above mentioned guidelines. The remainder of the document discusses general issues and provides template specific instructions.
  • Annex II: Provides a template for IPU threshold monitoring.
  • Annex III: Provides a template for EBA feedback to facilitate NCAs cooperation on IPUs.
  • Annex IV: Provides a template for IPU and TCB publication.