On 9 December 2019, the European Systemic Risk Board (ESRB) published a recommendation on the exchange and collection of information for macro-prudential purposes on branches of banks having their head office in another Member State or in a third country. The ESRB also published a report which provides an analysis on the topic.
The report:
- describes how significant foreign branches are in EU Member States (chapter 2);
- discusses the potential financial stability implications of foreign branches in EU Member States (chapter 3);
- describes the current situation regarding existing definitions, information available and the framework for the exchange of information on foreign branches within the overall EU legal framework (chapter 4); and
- makes the following conclusions: (i) a framework for the exchange of information on foreign branches for macro-prudential purposes is necessary and should be further developed at both the EU and national level; and (ii) colleges of supervisors and voluntary arrangements between authorities on the exchange of information within the existing legal framework, such as Memoranda of Understanding, are proposed as vehicles of this framework (chapter 5).
