The European Systemic Risk Board (ESRB) has published a second summary compliance report assessing the implementation of recommendation ESRB/2019/18 on the exchange and collection of information for macro-prudential purposes regarding branches of credit institutions having their head office in another member state or in a third country. The recommendation, issued on 26 September 2019, is divided into three parts (A, B and C):
- Recommendation A, addressed to the relevant authorities, concerns cooperation and the exchange of information on a need-to-know basis for macro prudential and financial stability tasks.
- Recommendation B, addressed to the European Commission, focuses on identifying and removing potential obstacles in European Union legislation that may prevent authorities responsible for macro prudential policy or other financial stability tasks from obtaining the information required on branches to carry out their functions.
- Recommendation C, addressed to the European Banking Authority (EBA), concerns the development of guidelines for monitoring the exchange of information.
The ESRB concludes that this final assessment indicates a high level of compliance with recommendation ESRB/2019/18 across all addressees, i.e. the ECB, the EC and the EBA. At this stage, the ESRB considers it sufficient to continue monitoring the effectiveness and efficiency of the information exchange on branches between authorities. If any material issues are identified, the ESRB calls for the EBA to carry out a specific assessment of their root causes and determine whether issuing guidelines would address the problem.
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