On 23 June 2021, the European Banking Authority (EBA) issued a report on the treatment of incoming third country branches (TCB) under the national law of Member States. The report is based on Article 21b(10) of the Capital Requirements Directive IV which mandates the EBA to submit a report to the European Parliament, the Council and the European Commission on the treatment of third-country branches under national law of Member States by 28 June 2021.

The report sets out 14 high-level policy recommendations for the further harmonisation of EU law as regards third country branches. In particular, the recommendations focus on an EU centralised equivalence assessment, effective cooperation supported by the conclusion of memoranda of understanding with third country home authorities, an appropriately determined scope of authorisation and prudential requirements (notably capital, liquidity, internal governance including booking arrangements), certain anti-money laundering aspects, a uniform minimum reporting framework and satisfactory recovery plans.