CRD VI Commission proposal on Third Country Branches (TCB): Position on market access, booking, liquidity and authorisation requirements (Art 47 and 48 CRD VI) - April 2022
The EU Banking Package includes, alongside measures to implement remaining elements of the Basel III standard, proposals for a wide-ranging harmonisation of the framework for providing banking services from third countries into the EU, including requirement to set up a physical presence within each targeted Member State. This approach would unnecessarily limit liquidity and consumer options, particularly in less developed markets within the EU, with likely adverse consequences for the competitive landscape that would be to the detriment of EU-based corporates and entrepreneurs, including fewer options for raising finance, managing risk and making cross-border payments and investments.
We rather believe that, if necessary, than Only core banking services should trigger the establishment of a physical presence in the EU. Furthermore, the provision of core banking services should not trigger the establishment of a physical presence if those activities are provided are necessary to carry out MiFID services and other non-core banking services. In addition, corporates should not be restricted to obtain lending only from banks with an establishment in the EU. Corporates as they need access to global financial services.
Finally, the SFC position contains some suggestions for improvements relating to booking, liquidity and licensing requirements.