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Responding to the proposed changes to the supervisory regime for third-country branches

17 Sep 2021
Financial Services

Wholesale branch-based banking – both within the EU and globally – contributes to the financing of EU and non-EU-companies, thereby enhancing competition, global connectivity, market diversity and access to deep pools of capital and liquidity. In reaction to the recent European Banking Authority’s report on the treatment of incoming third-country branches (TCBs), AmCham EU calls for proportionality when harmonising the EU’s supervisory regime for third-country branches in a joint letter with the Bank Policy Institute, the Japanese Bankers Association and the Swiss Finance Council.

Third Country Branches

While we understand the quest to address regulatory and supervisory divergences for TCBs across Member States, we underline the importance of proportionate supervisory and regulatory measures to increase supervision of branch activities and possible risks. These should be explored before reverting to structural measures which could negatively impact funding for businesses and the European economy – possible leading to a global regulatory trend towards subsidiarisation undermining the plethora of benefits of branches. As institutions highly invested in and committed to the EU, we are keen to cooperate with the EU to find policy outcomes underpinning stable, long-term financing for EU business and economic growth. Read more in our full letter to the European Banking Authority and the European Commission.