On 9 December 2019, there was published in the Official Journal of the European Union (OJ) a recommendation of the European Systemic Risk Board (ESRB) on the exchange and collection of information for macroprudential purposes on branches of credit institutions having their head office in another Member State or in a third country.

Contained within the recommendation is the following:

• Recommendation A on co-operation and exchange of information on a need-to-know basis addressed to relevant authorities.

Relevant authorities are to exchange information deemed necessary for the discharge of their tasks related to the adoption and/or activation of macroprudential policy measures or for other financial stability tasks, in an effective and efficient manner, as regards branches in a host Member State of credit institutions having their head office in another Member State or in a third country. These authorities should also take into consideration the guidelines recommended to the European Banking Authority (EBA) (see recommendation C below). Relevant authorities are also recommended to establish memoranda of understanding or other forms of voluntary arrangements for cooperation and exchanging information.

By 31 December 2020, the relevant authorities are requested to deliver an interim report to the ESRB and the Council of the EU on the implementation of these recommendations, and to deliver their final report by 31 December 2024.

• Recommendation B on changes to the EU legal framework addressed to the European Commission (Commission).

The Commission is to assess whether any impediments exist in EU legislation that prevent authorities responsible for macroprudential policy or financial stability from having or obtaining the necessary information on branches to carry out those functions or fulfil their tasks. Where such impediment exists, the Commission is to propose legislative amendments to remove any such impediments.

By 31 December 2022, the Commission is to report to the ESRB and the Council of the EU on the implementation of this recommendation.

• Recommendation C on guidelines for and the monitoring of exchange of information addressed to the EBA.

The EBA is to issue guidelines in accordance with recommendation A for the exchange of information between relevant authorities. The guidelines should include a list of the minimum information to be exchanged, which is set out in the recommendation. The EBA is also to regularly monitor, in cooperation with the ESRB, the effectiveness and efficiency of the exchange of information between relevant authorities.

By 31 December 2023, the EBA is to report to the ESRB and the Council of the EU on the implementation of this recommendation.