EBA consults on draft ITS for TCB reporting under CRD6

EBA consults on draft ITS on reporting requirements for TCBs and HUs under CRD6

The European Banking Authority (EBA) is consulting (via EBA/CP/2025/28 (dated 20 July 2025, published 31 July 2025)) on draft Implementing Technical Standards (ITS) issued under Article 48l of Directive 2013/36/EU (CRD6). These ITS specify the supervisory reporting requirements for third-country branches (TCBs) operating in the EU and their head undertakings (HUs). The consultation seeks to harmonise reporting formats, definitions, and frequencies to ensure effective supervision of TCBs.

Executive Summary

The ITS aim to implement the new TCB regime introduced by CRD6, which outlines the regulatory and financial information TCBs must report to their national competent authorities (NCAs). The ITS propose:

• Two sets of templates:

  • Annex I and the accompanying Instructions document: Reporting requirements for TCBs.
  • Annex II and the accompanying Instructions document: Reporting requirements for HUs.

• A proportional approach distinguishing between Class 1 and Class 2 TCBs, with more detailed reporting for Class 1 TCBs.

• Reporting frequencies ranging from monthly to annually, depending on the data point and TCB classification.

The ITS aim to address regulatory fragmentation, ensure consistent supervision, and provide a comprehensive overview of TCB activities in the EU.

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Impact on firms

Whilst a lot of these reporting obligations are not entirely new, CRD6 introduces new elements. TCBs, for example, must report the largest recorded assets and liabilities originated by the TCB classified by sector and counterparty type, including, in particular, financial sector exposures. HUs, for example, must report on the services provided by the HU to clients established or situated in the EU on the basis of reverse solicitation. This will require an uplift in terms of current record-keeping and reporting done by UK firms with branches in the EU, as well as within the TCBs themselves.

It is also important to note the timing, the reporting requirements will come into force before the Article 21c third country branch requirement, meaning any existing branches of non-EU banks and HUs will need to start complying with these reporting requirements from next year.

Key Provisions of the ITS

Scope and Reporting Requirements

• Article 48k CRD VI specifies the information TCBs must report, including:

  • Assets and liabilities booked or originated by the TCB.
  • Significant internal transactions with the HU and its group.
  • Compliance with prudential requirements.
  • Recovery plans and business strategies of the HU.

• Proportionality:

  • Class 1 TCBs (larger, more complex) must report more detailed information.
  • Class 2 TCBs (smaller, less complex) have reduced reporting obligations.

Templates and Reporting Frequencies

The Annexes to the draft ITS include templates and instructions, to ensure uniform reporting formats. Data must be submitted in these specified formats, with numerical precision and identification of entities using Legal Entity Identifiers (LEIs).

• Annex I and the accompanying Instructions document are the templates for TCB reporting. This includes:

  • Financial information (e.g., assets, liabilities, off-balance sheet items);
  • Regulatory information (e.g., capital endowment, liquidity coverage); and
  • The reporting frequencies: Monthly, quarterly, semi-annual, or annual.

• Annex II and the accompanying Instructions document are the templates for HUs. This includes:

  • Aggregated information on the HU's assets, liabilities, and compliance with prudential requirements;
  • Services provided by the HU on the basis of reverse solicitation of services; and
  • The reporting frequencies: Quarterly or semi-annual.

Please see the EBA's related press release here for the relevant supporting documentation.

Consultation questions

The EBA seeks feedback on questions around:

1. Clarity and appropriateness of the reporting requirements and templates;
2. Any discrepancies between the templates and underlying requirements in CRD6;
3. The cost of compliance;
4. Feasibility of the transition period and first-year reporting;
5. Challenges in obtaining data on HUs, especially for Class 2 TCBs; and
6. Specific comments on individual data points within the templates and instructions.

Next Steps

A public hearing will take place on the draft RTS on 5 September 2025. Registration is available here. Comments on the ITS can be submitted until 31 October 2025. Following the consultation period, the EBA will finalise the ITS and submit them to the European Commission by 10 January 2026. The ITS are expected to apply from 28 December 2026, with the first reporting reference date being December 2026, effectively giving TCBs and HUs an implementation period of about a year (for the first year reporting will only be done on an annual basis).