The European Banking Authority (EBA) has quietly launched what could become the most significant regulatory shift for international banking in decades. This consultation on third-country branch guidelines represents far more than routine bureaucratic procedure. Hidden beneath technical language lies a framework that will fundamentally reshape how non-European banks access EU markets, potentially affecting billions in cross-border transactions.
New authorization rules significantly alter the worldwide banking scenario
EBA guidelines define a comprehensive framework of authorization rules applied to branches of third countries under the Capital Requirements Directive. These rules aim to branches of non-EU countries’ credit institutions that want to conduct operations within Europe’s market environment. These guidelines deal with content verification, application templates, and application procedures followed by authorities concerning authorization applications of international banking organizations.
There is emphasis on third-country head undertakings that submit applications for authorization and involve comprehensive documentation and validation of compliance. One of the essential elements is non-opposition statements from third-country competent authorities, and this is aimed at ensuring that branch establishments are safe and sound. There is a new layer of cooperation that was not present before.
Harmonized market access creates a consistent regulatory approach
While this framework is quite comprehensive, it has made changes through its minimum harmonization regime, especially concerning authorization, prudential rules, booking of contracts, capital infusion, risk management, and internal governance arrangements. Thus, all countries may be subjected to equal scrutiny irrespective of their membership in the EU states.
Timeline of consultation expands into February, including public hearings
Also, this is a public consultation exercise that will end on February 3, 2026, offering all interested parties ample time to comment on these proposed guidelines. Entities within this sector can comment on this issue through EBA’s online consultation tool, and all comments will be made public except if requested confidentially by all commenting parties.
There is a public hearing scheduled on December 10, 2025, from 12:00 to 13:00 CET via conference call. Registration deadline is on December 8, 2025, at 16:00 CET. Direct dialogue opportunities between regulators and industry representatives within this public hearing enable them to have a live interaction on implementation issues and concerns.
Multiple regulatory products coordinate a comprehensive implementation strategy
The guidelines form part of a broader regulatory package including several interconnected components:
- Draft guidelines on capital endowment requirement instruments
- Regulatory Technical Standards on booking arrangements
- Implementing Technical Standards on reporting requirements
- Revised guidelines on internal governance structures
- Supervisory Review and Evaluation Process guidelines
- Regulatory Technical Standards on supervisory colleges
Builds on the amended Capital Requirements Directive
The authorization guidelines have their legal foundations laid down in Article 48c(8) of Directive 2013/36/EU, as it obligates EBA to develop lists of information, criteria of assessment, and procedures of application. Directive 2013/36/EU is an amendment that brings about a totally new system concerning third-country branches, thereby abandoning former ‘ad-hoc’ treatments of this issue.
Directive (EU) 2024/1619, which amended Directive 2013/36/EU, establishes a legal framework within which this new system operates. By this amendment, minimum harmonized rules have been provided regarding authorization, prudential, and supervisory issues. Through this, each country is provided flexibility concerning this issue despite implementation through an EU directive. The draft of these guidelines is consistent throughout, and this is within other rules that have been developed at the same time for implementation by branches of third countries.
This comprehensive supervisory framework demonstrates the EBA’s dedication to ensuring that there is a strong and harmonized framework for supervising third-country branches. Third-country branches are branches that lie outside of Europe, and they play an essential role in facilitating cross-border trade and economic growth. Specifically, this consultation is a historic step towards achieving Europe’s most “ambitious overhaul of international banking regulations” within the last few years.