EBA consults on draft RTS on booking arrangements for TCBs under CRD6

Summary of EBA/CP/2025/16 (11 July 2025)

EBA's Draft Regulatory Technical Standards specifying the booking arrangements that third-country branches are to apply for the purposes of Article 48h of CRD6

1. Introduction and Purpose

The European Banking Authority (EBA) is consulting (via EBA/CP/2025/16 (11 July 2025)) on draft Regulatory Technical Standards (RTS) issued under Article 48h of Directive 2013/36/EU (CRD6) to specify booking arrangements for third-country branches (TCBs). These RTS fall under the mandate given to the EBA under Article 48h(4) CRD6.

Comments on the RTS can be submitted until 10 October 2025. An extract of Article 48h is included in Annex 1 to this Summary.

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2. Impact on firms

TCBs should bear in mind that they will need to record in their registry even transactions that do not require authorisation, such as those that rely on the reverse enquiry or intra-group exemptions. We note that this RTS applies to transactions entered into by TCBs in a Member State rather than third country entities undertaking transactions on a cross border basis into the Member State.

3. Executive Summary

Article 48h CRD6 requires TCBs to maintain a registry book to track and record all assets and liabilities booked or originated in the Member State. The RTS seeks to specify:

• methodologies for identifying and recording assets, liabilities, and off-balance sheet items (see Section 4.1 of this Summary);
• minimum information to be maintained in the registry book (see Section 4.2 of this Summary); and
• risk management information to be included (see Section 4.3 of this Summary).

The RTS' broad aim is to prevent divergent practices across Member States and ensure effective supervision and risk management. The importance of booking arrangements (and their associated valuations) is of  importance in the context of CRD6 because they:

• are critical for classifying TCBs and determining supervisory intensity (Article 48a CRD6); and
• ensure risks associated with TCB activities are monitored and managed effectively.

Overall the RTS seeks to capture within scope of Article 48h CRD6 a wide remit of assets and liabilities and, notably, a wide range of transactions (including those out-of-scope transactions under Article 21c CRD6 such as reverse solicitation and intra-group).

4. Consultation Questions

The EBA seeks feedback on the following:

• Clarity of the distinction between "booked" and "originated" assets and liabilities
• Clarity of the concept of off-balance sheet items
• Bookkeeping requirements
• Treatment of intragroup exposures
• Measurement of originated assets and liabilities
• Minimum content of the registry book
• Approach to providing risk information in the registry book

5. Key Provisions of the RTS

5.1 Identifying and keeping a track record of assets, liabilities and off-balance sheet items (a.2 RTS)

Article 48h(1) CRD6 requires TCBs to identify and record items apply in relation to "booked' or "originated" assets and liabilities. The RTS seeks to:

• define "booked' and "originated" (including scoping out "off-balance-sheet" items and the treatment of derivatives);
• scope the types of transactions in relation to which these items must be recorded; and
• provide detail on the record-keeping obligations.

(A) Definition of "Booked" or "Originated" (a.2(1) RTS)

The definitions below are referenced to "the accounting framework" defined in the RTS as "the accounting framework used by the third-country branch for the purposes of reporting the information on the assets and liabilities held on their books, referred to in Article 48k paragraph 1 of Directive (EU) No 2013/36/EU".

The EBA's rationale for this approach is that (although there are no EU requirements for TCBs to draw up separate financial statements) many TCBs are de facto subject to certain national accounting requirements (as well as international accounting standards or GAAP principles in their member state) for reporting purposes (see Article 48k(1) CRD6). The EBA decided, from a policy perspective, to prefer the leverage of existing accounting standards, rather than create a new framework.

(1) "Assets and liabilities booked" - definition and scope

Defined as "assets and liabilities recognised in accordance with the accounting framework".

Further explanation is found in the explanatory pages of the CP (page 9), where the EBA provides that assets and liabilities should be considered 'booked' when activities carried out by the TCB in a Member State create rights or obligations that would give rise to the recognition of an asset or liability according to the accounting framework, as clarified within the draft RTS.

(2) "Assets and liability originated" - definition and scope

Defined as "assets and liabilities not recognised in accordance with the accounting framework due to the initial or subsequent full or partial transfer of risks and rewards or obligations to other entities".

A.4(a) RTS further provides that these:

• should be tracked and recorded until all associated risks, rewards or obligations transferred have expired, been discharged, cancelled or fulfilled; and
• should be measured at their outstanding nominal amount.

Further explanation is found in the explanatory pages of the CP (page 9), where the EBA provides that assets and liabilities should be regarded as 'originated', and not booked, when the rights or obligations, that arise from transactions initiated by TCBs, are initially or subsequently, in full or partially, transferred to another entity.

In addition, recital (5) RTS provides that assets and liabilities originated by the TCB should be tracked and recorded as long as any of the associated risks, rewards or obligations transferred are still present. In the explanatory pages of the CP (page 10) the EBA explains its rationale: "Tracking and keeping a record of those assets and liabilities, even if they have been transferred to another undertaking, is necessary as the classification under Article 48a CRD6, as well as other requirements of the TCBs framework, are calibrated on the basis of the total volume of assets and liabilities booked or originated. Thus, having a registry of those assets and liabilities, even when transferred, and until they have expired, been discharged, cancelled or fulfilled ensures an accurate representation of the activity generated by the TCB, including information on the associated risks. Moreover, TCBs are required to record other relevant information such as the transferee entity or the type of risk transfer."

(3) "Off-balance-sheet items" - General - definition and scope

Defined as "items representing a contingent asset or liability, as well as derivative instruments not recognised under the accounting framework, including those listed in Annexes I and II to Regulation (EU) No 575/2013 [Capital Requirements Regulation, CRR]"

Further detail in recital (3) RTS provides that the determination of off-balance items should be made on the basis of contingent assets or liabilities, as those items do not represent a present right or obligation that should be recognised on the balance sheet.

In addition, in the explanatory pages of section of the CP (page 10), the EBA confirms that the reference to the CRR Annexes is intended as non-exhaustive.

A.4(b) RTS further provides that these items should be tracked and recorded, until all associated risks, rewards or obligations have expired, been discharged, cancelled or fulfilled.

(4) "Off-balance-sheet items" - Treatment of Derivatives

Recital (3) RTS provides that a separate recording obligation should be established with regard to derivative instruments that are not recognised under the "accounting framework". Those derivatives should be tracked and recorded as well, to ensure that the same treatment is applied across TCBs despite the application of different accounting frameworks.

Further explanation for this is found in the explanatory pages of the CP (page 10), where the EBA considers that derivatives should be tracked and recorded in the registry book, regardless of the accounting framework used. This is because, while undertakings following IFRS would recognise derivative instruments on the balance sheet in accordance with IFRS 9, certain national GAAPs might not allow for the recognition of those instruments on the balance sheet. For this reason, the concept of off-balance sheet items referred in the RTS should also encompass all types of derivative instruments that are not recognised by TCBs under the accounting framework, but that would need to be recorded for the purpose of evaluating the risks to which they are exposed.

(B) (Wide) scope of transactions to be recorded

A.2(2) RTS provides that the following transactions are in scope:

• transactions carried out on the basis of their authorised activities;
• transactions carried out on the basis of services or activities for which no authorisation is required;
• intragroup transactions, including funding transactions carried out with their head undertaking and other third-country branches of the same head undertaking;
• transactions entered into on the basis of reverse solicitation.

The intent to capture such a wide range of transactions (including those which would exempt the application of Article 21c CRD6) is confirmed in recital (1) RTS: "When determining the scope of activities to be recorded in the registry book referred to in Article 48h(1) [CRD6], it should be considered that third-country branches may only conduct the authorised activities within the Member State where they are established, except for those situations specified in Article 48c(4)(d) [CRD6]. Against this backdrop, there is a need to clarify that the activities of third-country branches that should be recorded in the registry book are any transactions carried out by the third-country branch, including those on the basis of their authorised activities, those that do not require authorisation or concern intragroup transactions or transactions entered into on the basis of reverse solicitation of services.

Recital (5) also provides that for providing a comprehensive picture, intragroup transactions between the third-country branch and its head undertaking or other entities, including funding transactions with other third-country branches of the same head undertaking in accordance with Article 48c(4)(d) CRD6, should be treated as if they were carried out with external counterparties and, as such, duly recorded in the registry book.

(C) Keeping record

A.2(3) RTS provides the detail on how TCBs should keep a comprehensive and precise track record of the assets, liabilities and off-balance sheet items. In summary:

• establish, separately from their head undertaking, processes, systems, and procedures to ensure an accurate and timely tracking and recording of their activities;
• assess and track all rights, obligations and commitments, that are present or contingent, arising from their activities;
• record all the in-scope assets, liabilities and off-balance sheet items;
• classify and measure all in-scope assets and liabilities booked
• assess the value of booked assets and liabilities for impairment, depreciation and amortisation in accordance with the accounting framework;
• assess and track any provision on in-scope off-balance sheet items.

5.2 Minimum content of the registry book (a.3 RTS)

Article 48h(1) CRD6 requires TCBs to maintain a registry book with all necessary and sufficient information on the risks generated by the TCB and on how they are managed.

A.3 RTS sets out these minimum requirements. Additional content/type/granularity may be applied by TCBs (depending on their size, internal organization and the nature, scale and complexity of their activities and risks), but these are the minimum:

• counterparty details (incl. name, geographical area, economic activity, default status);
• instrument details (incl. principal/notional amount, outstanding nominal amount, type, inception/maturity date, interest rate, amortisation, payment frequency, currency);
• accounting information (incl. classification, carrying amount, impairment, amortisation);
• protection details (incl. type and value of protection);
• instruments kept in escrow to meet capital endowment requirements under Article 48e CRD6
• (originated assets and liabilities only) transferee or booking entity details (incl. name, geographical area, LEI code);
• (originated assets and liabilities only) type of transfer or derecognition;
• (off-balance sheet items only) counterparty details (incl. name, geographical area, economic activity, default status);
• (off-balance sheet items only) instrument details (incl. nominal/notional amount, type, inception/maturity date, payment frequency, trigger events, currency).

5.3 Information on risks (a.4 RTS)

Article 48h(1) CRD6 requires TCB's registry book to provide all necessary and sufficient information on the risks generated by the TCB and on how they are managed.

A.4 RTS sets out the minimum requirements. Additional type/granularity may be applied by TCBs (depending on their size, internal organization and the nature, scale and complexity of their activities and risks), but these are the minimum:

• Qualitative information on -

  • risks associated to the assets and liabilities booked or originated, and off-balance sheet items;
  • risk management framework, methods and metrics used to measure risks and strategies undertaken for hedging or mitigating risk; and

• Quantitative information on risks generated by risk type for all the assets and liabilities booked or originated, and off-balance sheet items, measured according to the relevant internal risk management metrics, including information on concentration of risk.

Annex 1

Extract of Article 48h CRD6

Article 48h

Booking requirements

1. Member States shall require third-country branches to maintain a registry book enabling those third-country branches to track and keep a comprehensive and precise record of all the assets and liabilities booked or originated by the third-country branch in the Member State and to manage those assets and liabilities autonomously within the third-country branch. The registry book shall provide all necessary and sufficient information on the risks generated by the third-country branch and on how they are managed.

2. Member States shall require third-country branches to develop and regularly review and update a policy on booking arrangements for the management of the registry book referred to in paragraph 1. Such a policy shall be documented and approved by the relevant governing body of the head undertaking. The policy shall provide a clear rationale for the booking arrangements and set out how those arrangements align with the third-country branch's business strategy.

3. Member States shall require third-country branches to ensure that an independent written and reasoned opinion on the implementation of and ongoing compliance with the requirements laid down in this Article be regularly prepared and addressed to the competent authority with the findings and conclusions.

4. EBA shall develop draft regulatory technical standards to specify the booking arrangements that third-country branches are to apply for the purposes of this Article, in particular as regards:

   (a) the methodology to identify and keep a comprehensive and precise track record of the assets and liabilities booked by the third-country branch in the Member State; and

   (b) the methodology to identify and keep a record of off-balance-sheet items and of the assets and liabilities originated by the third-country branch and booked or held remotely in other branches or subsidiaries of the same group on behalf of or for the benefit of the originating third-country branch.

EBA shall submit those draft regulatory technical standards to the Commission by 10 January 2026.

Power is delegated to the Commission to supplement this Directive by adopting the regulatory technical standards referred to in the first subparagraph of this paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.