S.I. No. 326/2026 - European Union (Capital Requirements) (Amendment) Regulations 2026

Notice of the making of this Statutory Instrument was published in

“Iris Oifigiúil” of 14th July, 2026.

Table of Contents

I, SIMON HARRIS, Minister for Finance, in exercise of the powers conferred on me by section 3 of the European Communities Act 1972 (No. 27 of 1972) and for the purpose of giving further effect to Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013¹ , as amended by Directive (EU) 2024/1619/EU of the European Parliament and of the Council of 31 May 2024² , hereby make the following regulations:

PART 1 Preliminary

Citation

1.

Definition

2.

PART 2 Amendment of Principal Regulations

Amendment of Regulation 3 of Principal Regulations

3.

• (a) by the insertion of the following definitions:

“ ‘chief financial officer’ means the person with overall responsibility for the financial resources management, financial planning and financial reporting of an institution;

‘climate neutrality’ means the overall objective of achieving climate neutrality by 2050 as set out in Article 2(1) of Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021³ ;

‘crypto-asset’ means a crypto-asset as defined in Article 3(1), point (5), of Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023⁴ that is not a central bank digital currency;

‘Directive 2015/849’ means Directive 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC⁵ , as amended by—

• (a) Directive (EU) 2018/843 of the European Parliament and of the Council of 30 May 2018⁶ ;

• (b) Directive (EU) 2019/2177 of the European Parliament and of the Council of 18 December 2019⁷ ;

• (c) Regulation (EU) 2023/1113 of the European Parliament and of the Council of 31 May 2023⁸ ;

• (d) Directive (EU) 2024/1640 of the European Parliament and of the Council of 31 May 2024⁹ ;

‘environmental, social and governance risk’ or ‘ESG risk’ means environmental, social and governance risk as defined in Article 4(1), point (52d), of the Capital Requirements Regulation;

‘eligible capital’ means eligible capital as defined in Article 4(1), point (71), of the Capital Requirements Regulation;

‘heads of internal control functions’ means the persons at the highest hierarchical level responsible for effectively managing the day-to-day operation of the internal control functions of an institution;

‘internal control functions’ means risk management, compliance and internal audit functions;

‘key function holders’ means the persons who have significant influence over the direction of an institution but are not members of the management body, including the heads of internal control functions and the chief financial officer, where those heads or that officer are not members of the management body;

‘management body in its management function’ means the management body acting in its role of directing an institution and includes the persons who effectively direct the business of the institution;

‘large institution’ means large institution as defined in Article 4(1), point (146), of the Capital Requirements Regulation;”,

• (b) in the definition of “Capital Requirements Directive” –

• (i) in paragraph (d), by the substitution of “and amending Directives 2009/138/EC and 2013/36/EU,” for “and amending Directives 2009/138/EC and 2013/36/EU, and”,

• (ii) in paragraph (e), by the substitution of “capital conservation measures,” for “capital conservation measures;”, and

• (iii) by the insertion of the following paragraphs after paragraph (e):

• “(f) Directive (EU) 2019/2034 of the European Parliament and of the Council of 27 November 2019¹⁰ on the prudential supervision of investment firms and amending Directives 2002/87/EC, 2009/65/EC, 2011/61/EU, 2013/36/EU, 2014/59/EU and 2014/65/EU,

• (g) Directive (EU) 2021/338 of the European Parliament and of the Council of 16 February 2021¹¹ amending Directive 2014/65/EU as regards information requirements, product governance and position limits, and Directives 2013/36/EU and (EU) 2019/878 as regards their application to investment firms, to help the recovery from the COVID-19 crisis,

• (h) Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023¹² on markets in crypto-assets, and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937,

• (i) Directive (EU) 2023/2864 of the European Parliament and of the Council of 13 December 2023¹³ amending certain Directives as regards the establishment and functioning of the European single access point, and

• (j) Directive (EU) 2024/1619 of the European Parliament and of the Council of 31 May 2024¹⁴ amending Directive 2013/36/EU as regards supervisory powers, sanctions, third-country branches, and environmental, social and governance risks;”,

• (c) in the definition of “Directive 2002/87/EC” –

• (i) by the substitution of the following paragraph for paragraph (h):

• “(h) Directive (EU) 2019/2034 of the European Parliament and of the Council of 27 November 2019¹⁵ ,”,

• (ii) by the insertion of the following paragraph after paragraph (h):

• “(i) Directive (EU) 2023/2864 of the European Parliament and of the Council of 13 December 2023¹⁶ ;”,

• (d) in the definition of “Directive 2009/65/EC” –

• (i) by the substitution of the following paragraph for paragraph (g):

• “(g) Directive (EU) 2019/2034 of the European Parliament and of the Council of 20 June 2019¹⁷ ,”,

• (ii) by the substitution of the following paragraph for paragraph (h):

• “(h) Directive (EU) 2019/2162 of the European Parliament and of the Council of 27 November 2019¹⁸ ,”, and

• (iii) by the insertion of the following paragraphs after paragraph (h):

• “(i) Directive (EU) 2021/2261 of the European Parliament and of the Council of 15 December 2021¹⁹ , and

• (j) Directive (EU) 2023/2864 of the European Parliament and of the Council of 13 December 2023²⁰ ;”,

• (e) by the substitution of the following definition for the definition of “internal approaches”:

“ ‘internal approaches’ means the –

• (a) internal ratings based approach referred to in Article 143(1),

• (b) internal model approach referred to in Article 221,

• (c) internal model method referred to in Article 283,

• (d) alternative internal model approach referred to in Article 325az, and

• (e) internal assessment approach referred to in Article 265(2),

of the Capital Requirements Regulation”, and

• (f) by the substitution of the following definition for the definition of “senior management”:

“ ‘senior management’ means those natural persons who exercise executive functions within an institution and are directly accountable to the management body but are not members of that body, and who are responsible for the day-to-day management of the institution under the direction of the management body;”.

Amendment of Regulation 9A of Principal Regulations

4.

• (a) by the substitution of the following paragraph for paragraph (2):

• “(2) Subject to Regulation 9D, where a financial holding company or mixed financial holding company established in the State that is not referred to in paragraph (1) is –

  • (a) required to comply with these Regulations or the Capital Requirements Regulation on a sub-consolidated basis, or

  • (b) designated as responsible for ensuring the group’s compliance with prudential requirements on a consolidated basis as referred to in Regulation 9D(1)(c),

  the financial holding company or mixed financial holding company concerned shall seek approval in accordance with this Chapter.”,

and

• (b) in paragraph (3)(b)(ii), by the substitution of “under Regulation 79” for “under Regulation 109 in relation to the qualification of directors”.

Review of parent undertaking

5.

“9AA. (1) The Bank shall, on a regular basis, and in any event at least annually, review the parent undertakings of an institution in order to verify if that institution, the entity requesting an authorisation in accordance with section 9 of the Act of 1971, or the entity designated as responsible for ensuring the group’s compliance with prudential requirements on a consolidated basis (‘the designated entity’) has correctly identified any undertaking that complies with the criteria to be considered as a parent financial holding company, a parent mixed financial holding company, an EU parent financial holding company or an EU parent mixed financial holding company.

• (2) For the purposes of paragraph (1), where the parent undertakings are located in another Member State, the Bank shall cooperate with the competent authorities in those relevant Member States to conduct the review.

• (3) The Bank shall publish on its website, and update on an annual basis, a list of financial holding companies and mixed financial holding companies that have been granted approval or exempted from approval in accordance with this Chapter.

• (4) Where an exemption from approval has been granted, the list referred to in paragraph (3) shall also indicate the designated entity.”.

Amendment of Regulation 9B of Principal Regulations

6.

• (a) in paragraph (1), by the substitution of the following subparagraph for subparagraph (a):

• “(a) subject to Regulations 9C and 9D, the approval or exemption from approval of a financial holding company or mixed financial holding company takes place concurrently with an assessment by the Bank under Regulation 15, 25A or 25B of an acquisition by that financial holding company or mixed financial holding company, as the case may be, and”,

and

• (b) by the substitution of the following paragraph for paragraph (2):

• “(2) Where paragraph (1) applies, the assessment period referred to in Regulation 14(3) or 25C(2), as the case may be, shall be suspended until the date on which the procedure for approval under this Chapter is complete.”.

Amendment of Regulation 9D of Principal Regulations

7.

• (a) in paragraph (1)(c), by the insertion of “or a subsidiary financial holding company or mixed financial holding company that has been granted approval in accordance with this Chapter” after “subsidiary credit institution”, and

• (b) by the insertion of the following paragraph after paragraph (4):

• “(5) Where approval or exemption from approval of a financial holding company or mixed financial holding company pursuant to this Regulation is refused, and the Bank is the consolidating supervisor, the Bank shall notify the applicant of the decision and the reasons therefor within four months of receipt of the application, or where the application is incomplete, within four months of receipt of the complete information required for the decision.”.

Excluding exempt undertakings from perimeter of consolidation

8.

“9DA. Without prejudice to Regulation 9D, the Bank, as consolidating supervisor, may, on a case by case basis, allow financial holding companies and mixed financial holding companies which are exempted from approval under Regulation 9D to be excluded from the perimeter of consolidation where all of the following conditions are satisfied:

• (a) the exclusion does not affect the effectiveness of the supervision of the subsidiary credit institution or of the group;

• (b) the financial holding company or mixed financial holding company has no equity exposures other than the equity exposure in the subsidiary credit institution or in the intermediate parent financial holding company or mixed financial holding company controlling the subsidiary credit institution;

• (c) the financial holding company or mixed financial holding company does not make substantial recourse to leverage and does not have exposures which are not related to its ownership in the subsidiary credit institution or in the intermediate parent financial holding company or mixed financial holding company controlling the subsidiary credit institution.”.

Amendment of Regulation 9G of Principal Regulations

9.

• (a) in paragraph (1)(c), by the insertion of “, Regulation 9DA,” after “Regulation 9D(1) or (4)”,

• (b) in paragraph (2), by the insertion of “, Regulation 9DA,” after “Regulation 9D(1) or (4)”,

• (c) in paragraph (3), by the insertion of “, Regulation 9DA,” after “Regulation 9D(1) or (4)”,

• (d) in paragraph (4), by the insertion of “, Regulation 9DA,” after “Regulation 9D(1) or (4)”, and

• (e) by the insertion of the following paragraph after paragraph (4):

• “(4A) Where a joint decision referred to in paragraph (4) is reached and the Bank is not the consolidating supervisor, the Bank shall implement the joint decision or the joint decision shall apply directly in relation to a financial holding company or mixed financial holding company established in the State.”.

Insertion of Chapter 1C in Part 3 of Principal Regulations

10.

“Chapter 1C

Third-Country Branches

Commencement

9J. (a) This Chapter, other than Regulations 9X and 9Y, shall apply on and from 11 January 2027.

• (b) Regulations 9X and 9Y shall apply on and from the commencement of the European Union (Capital Requirements) (Amendment) Regulations 2026 (S.I. No. 326 of 2026).

Definitions

9K. In this Chapter –

‘third-country branch’ means a branch established in the State by –

• (a) an undertaking which has its head office in a third-country, for the purpose of carrying out any of the activities referred to in Regulation 9L(1), or

• (b) a credit institution which has its head office in a third-country;

‘head undertaking’ means an undertaking which has its head office in a third-country and which has established a third-country branch in the State, and the intermediate or ultimate parent undertakings of that undertaking, as applicable.

Requirement to establish branch for provision of banking services by third- country branches

9L. (1) Subject to Regulation 9P(9), an undertaking established in a third-country shall apply for authorisation as a third-country branch in accordance with Regulation 9P, in order to commence or continue carrying out the following activities in the State:

• (a) any of the activities set out at reference numbers 2 and 6 of the Schedule by an undertaking established in a third-country that would qualify as a credit institution or that would fulfil the criteria set out in Article 4(1), point (1)(b), of the Capital Requirements Regulation if it were established in the Union;

• (b) the activity referred to at reference number 1 of the Schedule by an undertaking established in a third-country.

• (2) Paragraph (1) shall not apply where the undertaking established in a third-country provides a service or activity to a client or counterparty established or situated in the Union that is:

  • (a) a retail client, an eligible counterparty, or a professional client within the meaning of Annex II, Sections I and II, to Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014²¹ established or situated in the Union where such client or counterparty approaches an undertaking established in a third-country at its own exclusive initiative for the provision of any service or activity referred to in paragraph (1);

  • (b) a credit institution;

  • (c) an undertaking of the same group as that of the undertaking established in a third-country.

• (3) Without prejudice to paragraph (2)(c), where a third-country undertaking solicits a client or counterparty, or a potential client or counterparty, referred to in paragraph (2)(a), through an entity acting on its own behalf or having close links with such third-country undertaking or through any other person acting on behalf of such undertaking, it shall not be deemed to be a service provided at the own exclusive initiative of the client or counterparty, or of the potential client or counterparty.

• (4) The Bank may require credit institutions and branches established in the State to provide it with any information that the Bank may consider necessary for the purposes of monitoring the services provided at the own exclusive initiative of a client or counterparty established or situated in the State where such services are provided by undertakings established in third countries that are part of the same group.

• (5) An initiative by a client or counterparty as referred to in paragraph (2) shall not entitle the third-country undertaking to market other categories of products, activities or services than those that the client or counterparty had solicited, other than through a third-country branch established in the State.

• (6) Without prejudice to paragraph (1), the establishment of a third-country branch shall not be required for any services, activities or products necessary for, or closely related to, the provision of the service, product or activity originally solicited by the client or counterparty, including where such closely related services, activities or products are provided subsequently to those originally solicited.

• (7) The requirement laid down in paragraph (1) shall not apply to services or activities listed in Annex I, Section A, to Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014²² , including any accommodating ancillary services, such as related deposit taking or the granting of credit or loans the purpose of which is to provide services under that Directive.

• (8) In order to preserve clients’ acquired rights under existing contracts, the requirement laid down in paragraph (1) shall be without prejudice to existing contracts that were entered into before 11 July 2026.

Prohibition of discrimination

9M. The Bank shall not apply to third-country branches, commencing or continuing to carry out their business, provision which results in a more favourable treatment than that accorded to branches of credit institutions having their head office in another Member State.

Classification of third-country branches

9N. (1) A third-country branch that meets one or more of the following conditions shall be classified as class 1:

- (a) the total value of the assets booked or originated by the third-country branch in the State is equal to or greater than €5 billion, as reported for the immediately preceding annual reporting period in Regulation 9X and 9Y;

- (b) the third-country branch’s authorised activities include taking deposits or other repayable funds from retail customers, provided that the amount of such deposits and other repayable funds is equal to or greater than 5 per cent of the total liabilities of the third-country branch or the amount of such deposits and other repayable funds exceeds €50 million;

- (c) the third-country branch is not a qualifying third-country branch within the meaning of Regulation 9O.

• (2) Third-country branches that do not meet any of the conditions set out in paragraph (1) shall be classified as class 2.

• (3) The Bank shall update the classification of third-country branches as follows:

  • (a) where a class 1 third-country branch ceases to meet the conditions set out in paragraph (1), it shall immediately be considered as class 2;

  • (b) where a class 2 third-country branch starts to meet one of the conditions set out in paragraph (1), it shall be considered as class 1 only after a period of four months from the date on which it started to meet those conditions.

  Conditions for qualifying third-country branches

  9O. (1) Where the following conditions are met in relation to a third-country branch, that branch shall be regarded as a qualifying third-country branch for the purposes of this Chapter:

  • (a) the head undertaking is established in a country that applies prudential standards and a supervisory oversight in accordance with the third-country’s banking regulatory framework that are at least equivalent to these Regulations and the Capital Requirements Regulation;

  • (b) the supervisory authorities of the head undertaking are subject to confidentiality requirements that are at least equivalent to the requirements laid down in Regulations 50A, 50B and 51;

  • (c) the head undertaking is established in a country that is not listed as a high-risk third-country that has strategic deficiencies in its anti-money laundering and counter-terrorist financing regime, in accordance with Article 9 of Directive (EU) 2015/849.

• (2) The Commission may adopt, by means of implementing acts, decisions as to whether the conditions set out in paragraph (1)(a) and (b) are met in relation to a third-country’s banking regulatory framework.

• (3) Before adopting the decision referred to in paragraph (2), the Commission may request the EBA’s assistance in accordance with Article 33 of Regulation (EU) No 1093/2010 to conduct an assessment of the relevant third-country’s banking regulatory framework and confidentiality requirements and to issue a report on the compliance of that framework and of those requirements with the conditions set out in paragraph (1)(a) and (b).

• (4) Upon receiving an application for authorisation in accordance with Regulation 9P, the Bank shall assess the conditions laid down in paragraph (1) and Regulation 9N to classify the third-country branch as class 1 or class 2.

• (5) Where the relevant third-country is not recorded in the EBA’s public register, maintained in accordance with Article 48b(4) of the Capital Requirements Directive, the Bank shall request the Commission to assess the third-country’s banking regulatory framework and confidentiality requirements for the purposes of paragraph (2), provided that the condition referred to in paragraph (1)(c) is met.

• (6) The Bank shall classify the third-country branch as class 1 pending the Commission’s adoption of a decision in accordance with paragraph (2).

Minimum conditions for authorisation of third-country branches

9P. (1) A third-country undertaking that proposes to commence or continue the activities referred to in Regulation 9L(1) in the State shall establish a branch in the State and shall apply to the Bank for a prior authorisation to establish a third-country branch before commencing or continuing those activities in accordance with this Chapter.

• (2) Subject to paragraph (4), the Bank may grant an authorisation where it is satisfied that the branch of the third-country undertaking complies with this Chapter.

• (3) An application for authorisation under paragraph (1) shall be in such form and contain such information as the Bank may from time to time determine and shall be accompanied by:

  • (a) a programme of operations setting out the envisaged business;

  • (b) the activities to be carried out amongst those referred to in Regulation 9L(1);

  • (c) the organisation and risk management of the branch in the State in accordance with Regulation 9T.

• (4) The Bank shall only grant an authorisation under paragraph (2) where, at a minimum, all of the following conditions are fulfilled:

  • (a) the third-country branch meets the minimum regulatory requirements laid down in this Chapter;

  • (b) the activities that the head undertaking seeks authorisation for in the State are covered by the authorisation that such head undertaking holds in the third-country where it is established and are subject to supervision in that third-country;

  • (c) the supervisory authority of the head undertaking in the third- country has been notified of and provided with the application to establish a branch in the State, together with the accompanying documents referred to in paragraph (3);

  • (d) there are no reasonable grounds to suspect that the third-country branch would be used to commit or facilitate the commission of money laundering or terrorist financing within the meaning of Article 1 of Directive 2015/849.

• (5) The Bank shall not grant an authorisation under paragraph (2) for the purposes of the activities in Regulation 9L(1)(b), unless it is satisfied that protection of deposits with the branch, corresponding to the protection provided by the European Union (Deposit Guarantee Schemes) Regulations 2015 ( S.I. No. 516 of 2015 ) is available to depositors.

• (6) An authorisation granted by the Bank under paragraph (2) shall provide that the third-country branch may only conduct the authorised activities within the State and expressly prohibits the third-country branch from offering or conducting those activities in other Member States on a cross-border basis, except for intragroup funding transactions concluded with other third-country branches of the same head undertaking and for transactions entered into on the basis of reverse solicitation of services in accordance with Regulation 9L.

• (7) The Bank shall not grant an authorisation under paragraph (2) unless it is satisfied that it is able to access all the necessary information on the head undertaking from the supervisory authorities of that head undertaking and to effectively coordinate its supervisory activities with those of the third-country’s supervisory authorities, in particular in periods of crisis or financial distress affecting the head undertaking, its group or the third-country’s financial system.

• (8) For the purposes of assessing whether the condition set out in paragraph (4)(d) is met, the Bank shall consult the authority responsible for the supervision of anti-money laundering or counter-terrorist financing in the Member State in accordance with Directive 2015/849 and obtain written confirmation that the condition is fulfilled before proceeding to authorising the third-country branch.

• (9) The Bank may decide that the authorisations of third-country branches granted on or before 10 January 2027 shall remain valid, provided that the third-country branches that were granted those authorisations comply with the minimum requirements laid down in this Chapter.

• (10) The Bank may impose conditions on an authorisation granted under paragraph (2) where it is satisfied that the conditions are calculated to promote the orderly and proper regulation of financial service providers.

• (11) The conditions referred to in paragraph (4) may be amended, revoked or added to and conditions may be imposed in relation to an authorisation granted under paragraph (2) from time to time by the Bank, if in the opinion of the Bank the amendment, revocation, addition or imposition is calculated to promote the orderly and proper regulation of financial service providers.

• (12) The Bank shall endeavour to conclude administrative agreements or other arrangements with relevant third-country competent authorities before a third-country branch commences its activities in the State.

• (13) The agreements referred to in paragraph (12) shall be based on the model administrative arrangements developed by the EBA in accordance with Article 33(5) of Regulation (EU) No 1093/2010.

• (14) Paragraph (12) shall not apply where the third-country branch is subject to stricter national requirements.

• (15) The Bank shall submit information about any administrative agreements or other arrangements concluded with third-country competent authorities to the EBA without delay.

Conditions for refusal or withdrawal of third-country branch’s authorisation

9Q. (1) The Bank may refuse or withdraw the authorisation of a third-country branch where:

- (a) the third-country branch does not meet the requirements for authorisation in this Chapter;

- (b) the head undertaking or its group does not meet the prudential requirements that apply to it under the third-country law or there are reasonable grounds to suspect that it does not meet or that it will breach those requirements within the following 12 months.

• (2) Where the circumstances referred to in paragraph (1)(b) occur, the Bank shall require the third-country branch in question to promptly notify their third- country competent authority.

• (3) In addition to the circumstances set out in paragraph (1), the Bank may also withdraw the authorisation granted to a third-country branch where any of the following conditions are met:

  • (a) the holder of the authorisation expressly renounces the authorisation;

  • (b) the third-country branch does not make use of the authorisation within 12 months, or has ceased to engage in business for more than six months;

  • (c) the third-country branch has obtained the authorisation through false statements or any other irregular means;

  • (d) the third-country branch no longer meets the conditions for the granting of the authorisation or fails to inform the Bank of material developments in this respect;

  • (e) the third-country branch can no longer be relied on to fulfil its obligations towards its creditors and, in particular, no longer provides security for the assets entrusted to it by its depositors;

  • (f) the third-country branch commits one of the contraventions referred to in Regulation 55(3);

  • (g) there are reasonable grounds to suspect that money laundering or terrorist financing within the meaning of Article 1 of Directive 2015/849 is being or has been committed or attempted in connection with the third-country branch, its head undertaking or its group, or that there is an increased risk of money laundering or terrorist financing being committed or attempted in relation to the third-country branch, its head undertaking or its group;

  • (h) the third-country fails to comply with the conditions imposed on the authorisation under Regulation 9P(10).

• (4) For the purpose of assessing whether the condition set out in paragraph (3)(g) is met, the Bank shall consult the authority responsible for the supervision of anti-money laundering or counter-terrorist financing in the State in accordance with Directive 2015/849.

• (5) Whenever the Bank proposes to refuse to grant an authorisation under paragraph (1), it shall –

  • (a) within the period of 6 months after the date of the receipt of the application for the authorisation, or

  • (b) where additional information in relation to the application has been sought by the Bank, within the period of 6 months after the date of the receipt by the Bank of the additional information,

  notify the applicant for the authorisation in writing of its reasons for the refusal and the applicant may, within the period of 21 days after the date of the giving of the notification, make representations in writing to the Bank in relation to the proposed refusal.

• (6) The Bank shall, before deciding to refuse the authorisation, consider any representations duly made to it under paragraph (5) in relation to the proposed refusal.

• (7) Subject to paragraph (6), where the Bank decides to refuse the application, it shall provide a reasoned response to the applicant.

• (8) Whenever the Bank proposes to withdraw an authorisation under paragraph (1) or (3) (otherwise than in circumstances to which paragraph (3)(a) relates) -

  • (a) it shall notify the holder of the authorisation in writing of the reasons for the proposed withdrawal and that the holder may, within 21 days after the date of the giving of the notification, make representations in writing to the Bank in relation to the proposed withdrawal,

  • (b) the holder of the authorisation may make such representations in writing to the Bank within the period referred to in subparagraph (a) as it sees fit, and

  • (c) the Bank shall, before deciding whether or not to withdraw the authorisation, consider any representations duly made to it under this Regulation in relation to the proposed withdrawal.

• (9) Where the Bank decides to withdraw an authorisation, it shall notify the third-country branch concerned, being the holder of the authorisation, in writing of the withdrawal, setting out the reasons for the withdrawal.

• (10) Where an authorisation is withdrawn under one or more of the grounds in paragraph (1) or (3), and the holder of the authorisation is not a company which is being wound up:

  • (a) that person shall continue to be subject to the duties and obligations imposed on it by or under financial services legislation until all liabilities of that person in respect of deposits (including deposits on current accounts) or other repayable funds accepted by it from depositors pursuant to the authorisation have been discharged to the satisfaction of the Bank;

  • (b) that person shall, as soon as possible after the authorisation is withdrawn –

    • (i) notify the Bank, and

    • (ii) as far as is reasonably practicable, notify every depositor concerned,

    of the measures it is taking or proposes to take to discharge in full and without undue delay its liabilities in respect of those deposits;

  • (c) in the case where –

    • (i) that person has notified the Bank in accordance with subparagraph (b) and the Bank is of the opinion that the measures being taken or proposed to be taken for the purposes of that paragraph are not satisfactory,

    • (ii) that person has not so notified the Bank and the Bank is of the opinion that it has failed to so notify as soon as possible after the authorisation is withdrawn, or

    • (iii) the Bank is of the opinion that that person has not taken all reasonable steps to so notify every depositor concerned,

    then the Bank may give a direction in writing to that person for such period, not exceeding 6 months, as may be specified therein, prohibiting it from –

    - (I) dealing with or disposing of any of its assets or specified assets in any manner, or
    
    - (II) engaging in any transaction or class of transaction or specified transaction, or
    
    - (III) making payments,
    
      without the prior authorisation of the Bank, and the Bank may require that person to prepare and submit to it for its approval within 2 months of the direction, a scheme for the orderly discharge in full of its liabilities to the depositors concerned.
    

• (11) The Bank shall, before deciding to withdraw an authorisation, consult with the relevant third-country authority provided however that if immediate action by the Bank is called for it shall not be necessary for the Bank to consult as aforesaid but in such a case the Bank shall notify the authority concerned of the withdrawal of the authorisation.

Capital endowment requirement

9R. (1) A third-country branch authorised by the Bank shall maintain at all times a minimum capital endowment that is at least equal to:

- (a) for class 1 third-country branches, 2.5 per cent of the branch’s average liabilities for the three immediately preceding annual reporting periods or, for newly authorised third-country branches, of the branch’s liabilities at the time of authorisation, as reported in accordance with Regulation 9X and 9Y, subject to a minimum of €10 million;

- (b) for class 2 third-country branches, 0.5 per cent of the branch’s average liabilities for the three immediately preceding annual reporting periods or, for newly authorised third-country branches, of the branch’s liabilities at the time of authorisation, as reported in accordance with Regulation 9X and 9Y subject to a minimum of €5 million.

• (2) Third-country branches shall fulfil the minimum capital endowment requirement referred to in paragraph (1) with assets in the form of any of the following:

  • (a) cash, or cash assimilated instruments as defined in Article 4(1), point (60), of the Capital Requirements Regulation;

  • (b) debt securities issued by central governments or central banks of Member States;

  • (c) any other instrument that is available to the third-country branch for unrestricted and immediate use to cover risks or losses as soon as those risks or losses occur.

• (3) Third-country branches shall deposit the capital endowment instruments referred to in paragraph (2) in an escrow account held in the State where the branch is authorised with a credit institution that is not part of the third-country branches’ head undertaking’s group or with the Bank, as determined by the Bank.

• (4) The capital endowment instruments deposited in the escrow account, in accordance with paragraph (3), shall be available for use for the purposes of Regulation 160 of the European Union (Bank Recovery and Resolution) Regulations 2015 ( S.I. No. 289 of 2015 ) in the case of resolution of the third-country branch and for the purposes of the winding-up of the third-country branch.

Liquidity requirements

9S. (1) Without prejudice to the third-country branch’s other obligations under financial services legislation, the third-country branch shall maintain at all times a minimum volume of unencumbered and liquid assets sufficient to cover liquidity outflows over a minimum period of 30 days.

• (2) For the purposes of paragraph (1), class 1 third-country branches shall comply with the liquidity coverage requirement laid down in Part Six, Title I, of the Capital Requirements Regulation and in Commission Delegated Regulation (EU) 2015/61 of 10 October 2014²³ .

• (3) Third-country branches shall deposit the liquid assets held to comply with this Regulation in an account held in the State.

• (4) The liquid assets referred to in paragraph (3) shall be held in a credit institution that is not part of the head undertaking’s group or with the Bank, as determined by the Bank.

• (5) Where there are liquid assets remaining in the account referred to in paragraph (3) after they have been applied to cover liquidity outflows in accordance with paragraph (1), those remaining liquid assets shall be available for use for the purposes of Article 96 of Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014²⁴ in the case of resolution of the third-country branch and for the purposes of the winding-up of the third-country branch in accordance with the law of the State.

• (6) The Bank may waive the liquidity requirement laid down in this Regulation for qualifying third-country branches.

Internal governance and risk management

9T. (1) Third-country branches shall have at least two persons in the State effectively directing their business.

• (2) The persons referred to paragraph (1) shall be of good repute and possess sufficient knowledge, skills and experience and commit sufficient time to the performance of their duties.

• (3) Class 1 third-country branches shall comply with Regulations 61, 63, 64(16) to (23), 80, 82 and 83.

• (4) The Bank may require third-country branches to establish a local management committee to ensure an adequate governance of the branch.

• (5) Class 2 third-country branches shall comply with Regulations 61, 63, 80, 82 and 83 and to have internal control functions as provided for under Regulation 64(16) to (23).

• (6) Depending on their size, internal organisation and the nature, scope and complexity of their activities, the Bank may require class 2 third-country branches to appoint heads of internal control functions as provided for in Regulation 64(16) to (23).

• (7) Third-country branches shall establish reporting lines to the management body of the head undertaking that cover all material risks and risk management policies and changes thereof.

• (8) Third–country branches shall have in place adequate information and communication technology (ICT) systems and controls to ensure that policies referred to in paragraph (7) are duly complied with.

• (9) Third-country branches shall monitor and manage their outsourcing arrangements and provide the Bank with full access to all information the Bank needs to exercise its supervisory function with regards to these activities.

• (10) Third-country branches that engage in back-to-back or intragroup operations shall allocate adequate resources to identify and properly manage their counterparty credit risk where material risks associated with assets booked by the third-country branch are transferred to the counterparty.

• (11) Where critical or important functions of the third-country branch are carried out by its head undertaking, those functions shall be carried out in accordance with internal arrangements or intragroup agreements and the third-country branch shall ensure that the Bank has access to all information that it considers necessary to exercise its supervisory function with regards to such activities.

• (12) An independent third party shall assess on a regular basis the implementation of and ongoing compliance by the third-country branch with the requirements laid down in this Regulation and submit a report to the Bank with its findings and conclusions.

• (13) The frequency of the assessment in paragraph (12) shall be determined by the Bank.

Booking requirements

9U. (1) Third-country branches shall maintain a registry book enabling them to track and keep a comprehensive and precise record of all the assets and liabilities booked or originated by the third-country branch in the State and to manage those assets and liabilities autonomously within the third-country branch.

• (2) The third-country branch shall ensure that the registry book provides all necessary and sufficient information on the risks generated by the third-country branch and on how they are managed.

• (3) Third-country branches shall develop and regularly review and update a policy on booking arrangements for the management of the registry book referred to in paragraph (1).

• (4) The policy referred to in paragraph (3) shall provide a clear rationale for the booking arrangements and set out how those arrangements align with the third-country branch’s business strategy.

• (5) The policy referred to in paragraph (3) shall be documented and approved by the relevant governing body of the head undertaking.

• (6) Third-country branches shall ensure that an independent written and reasoned opinion on the implementation of and ongoing compliance with the requirements laid down in this Regulation be regularly prepared and addressed to the Bank with the findings and conclusions.

• (7) The frequency of the assessment in paragraph (6) shall be determined by the Bank.

Power to require establishment of subsidiary

9V. (1) The Bank may require a third-country branch to apply for authorisation under section 9 of the Act of 1971 at least where –

- (a) the third-country branch has carried out in the past or is currently carrying out activities referred to in Regulation 9L(1), without prejudice to the exemptions referred to in Regulation 9P(6), with clients or counterparties in other Member States,

- (b) the third-country branch meets the indicators of systemic importance referred to in Regulation 122 or is assessed as having systemic importance in accordance with Regulation 9W and poses significant financial stability risks in the Union or the State, or

- (c) the aggregate amount of the assets of all third-country branches in the Union which belong to the same third-country group is equal to or greater than €40 billion or the amount of the third-country branch’s assets on its book in the State is equal to or greater than €10 billion.

• (2) The Bank may require authorisation in accordance with paragraph (1) –

  • (a) after applying the measures in Regulation 9W or 9ZB, as appropriate, or

  • (b) where the Bank can justify, on grounds other than those listed under paragraph (1), that the measures in Regulation 9W or 9ZB would be insufficient to address the material supervisory concerns.

• (3) Before exercising the power referred to in paragraph (1), the Bank shall consult the EBA and the competent authorities of the Member States where the relevant third-country group has established other third-country branches or subsidiary institutions.

• (4) For the purposes of paragraph (1)(b) and (c), and when carrying out the assessment referred to in Regulation 9W, the Bank shall take into account appropriate indicators for assessing the systemic importance of third-country branches, which shall include in particular:

  • (a) the size of the third-country branch;

  • (b) the complexity of the third-country branch’s structure, organisation and business model;

  • (c) the degree of interconnectedness of the third-country branch with the financial system of the Union and of the State;

  • (d) the substitutability of the activities, services or operations conducted or the financial infrastructure provided by the third-country branch;

  • (e) the market share of the third-country branch in the Union and in the State as regards total banking assets and in relation to the activities and services that it provides and the operations that it conducts;

  • (f) the likely impact of a suspension or closure of the third-country branch’s operations or business on the liquidity of the financial system of the State or on the payment, clearing and settlement systems in the Union and in the State;

  • (g) the role and importance of the third-country branch for the activities, services and operations of the third-country group in the Union and in the State;

  • (h) the role and importance of the third-country branch in the context of resolution or winding-up based on information from the resolution authority;

  • (i) the volume of the third-country group’s business being conducted through third-country branches, relative to the business of that group conducted through subsidiary institutions authorised in the Union and in the Member States where the third-country branches are established.

  Assessment of systemic importance and requirements on third-country branches which have systemic importance

  9W. (1) Where all third-country branches in the Union that belong to the same third-country group have an aggregate amount of assets in the Union as reported in accordance with Regulation 9X and 9Y equal to or greater than €40 billion either –

  • (a) on average for the immediately preceding three annual reporting periods, or

  • (b) in absolute terms for at least three annual reporting periods during the immediately preceding five annual reporting periods,

  the third-country branch shall be subject to the assessment laid down in paragraph (3).

• (2) The asset threshold referred to in paragraph (1) shall not include the assets held by the third-country branches in connection with central bank market operations entered into with ESCB central banks.

• (3) Where the Bank is responsible for the supervision of a third-country branch which meets the condition set in paragraph (1), it shall assess whether the third-country branch has systemic importance and poses significant risks for the financial stability of the Union or of the State.

• (4) For the purposes of paragraph (3), the Bank shall, in particular, have regard to the indicators of systemic importance referred to in Regulation 9V(4) and Regulation 122.

• (5) As part of the assessment referred to in paragraph (3), the Bank shall consult the EBA and competent authorities of the Member States where the relevant third-country group has established other third-country branches or subsidiary institutions in order to assess the financial stability risks that the relevant third-country branch poses for the other Member States.

• (6) The Bank shall provide its reasoned assessment of the systemic importance of the third-country branch for the Union or the State to the EBA and to the competent authorities of the Member States where the relevant third-country group has established other third-country branches or subsidiary institutions.

• (7) Where the competent authorities which are consulted disagree with the assessment of the systemic importance of the third-country branch, they shall inform the Bank within 10 working days from receiving the assessment.

• (8) The Bank and other relevant competent authorities, with the assistance of the EBA, shall use their best endeavours to reach a consensus on the assessment and, where applicable, on the targeted requirements referred to in paragraph (10) no later than three months from the date on which the competent authority or, where appropriate, the designated authority raised its objection.

• (9) After the period referred to in paragraph (8) has expired, the Bank shall decide on the assessment of the systemic importance of the third-country branch and on the targeted requirements referred to in paragraph (10).

• (10) Where appropriate to address the risks identified, the Bank or, where appropriate, the designated authority may subject the third-country branch to targeted requirements that may include -

  • (a) requiring that the relevant third-country branch restructure its assets or activities in such a manner that it ceases to qualify as having systemic importance in accordance with paragraph (3) or that it ceases to pose an undue risk to the financial stability of the Union or the State, or

  • (b) imposing additional prudential requirements on the relevant third-country branch.

• (11) Where the Bank considers that a third-country branch has systemic importance, but it decides not to exercise any of the powers referred to in paragraph (10)(a) or Regulation 9V, it shall provide a reasoned notification to the EBA and to the competent authorities of the Member States where the relevant third-country group has established other third-country branches or subsidiary institutions as to why it has decided not to exercise those powers.

Regulatory and financial information on third-country branches and on head undertaking

9X. (1) Third-country branches shall report to the Bank, at such time and frequency as the Bank may specify from time to time, information on:

- (a) the assets and liabilities held on their books in accordance with Regulation 9U and the assets and liabilities originated by the third-country branches, with a breakdown that singles out:

    - (i) the largest recorded assets and liabilities classified by sector and counterparty type, including, in particular, financial sector exposures;

    - (ii) significant exposure and funding source concentrations to specified types of counterparties;

    - (iii) significant internal transactions with the head undertaking and with members of the head undertaking’s group;

- (b) the third-country branches’ compliance with the requirements that apply to them under these Regulations;

- (c) on an ad hoc basis, the deposit protection arrangements available to depositors in the third-country branches in accordance with Article 15(2) and (3) of Directive 2014/49/EU of the European Parliament and of the Council of 16 April 2014<sup><a href="/ie/law/IE-2026-si-326/3#fn-25">25</a></sup> ;

- (d) additional regulatory requirements imposed on the third-country branches under financial services legislation.

• (2) For the purposes of reporting the information on the assets and liabilities held on their books in accordance with paragraph (1)(a), third-country branches shall apply the international accounting standards as applied in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002²⁶ or the generally accepted accounting principles applicable in the State.

• (3) Third-country branches shall report to the Bank the following information on their head undertaking:

  • (a) on a periodic basis, aggregated information on the assets and liabilities held or booked, respectively, by the subsidiaries and other third-country branches of that head undertaking’s group in the Union;

  • (b) on a periodic basis, the head undertaking’s compliance with the applicable prudential requirements on an individual and consolidated basis;

  • (c) on an ad hoc basis, significant supervisory reviews and assessments, when those are conducted on the head undertaking, and the consequent supervisory decisions;

  • (d) the recovery plans of the head undertaking and the specific measures that could be taken on the third-country branches in accordance with those plans, and any subsequent updates and amendments to those plans;

  • (e) the head undertaking’s business strategy in relation to the third-country branches and any subsequent changes to that strategy;

  • (f) the services provided by the head undertaking to clients established or situated in the Union on the basis of reverse solicitation of services.

• (4) The Bank may impose reporting requirements, in addition to those mentioned in paragraph (3), on third-country branches where it deems additional information is necessary to gain a comprehensive view of the third-country branches’ or their head undertaking’s business, activities or financial soundness, to verify the third-country branches’ and their head undertaking’s compliance with applicable law and to ensure the third-country branches’ compliance with that law.

Standard forms and templates and frequency of reporting

9Y. (1) The regulatory and financial information referred to in Regulation 9X shall be reported at least twice a year by class 1 third-country branches and at least annually by class 2 third-country branches.

• (2) The Bank may waive all or part of the requirements to report information on the head undertaking laid down in Regulation 9X for qualifying third-country branches, provided that that competent authority is able to obtain the relevant information directly from the supervisory authorities of the relevant third-country.

Supervision of third-country branches and supervisory examination programme

9Z. (1) The Bank shall comply with this Chapter and, subject to the necessary modifications, with Part 6, for the purpose of supervising third-country branches.

• (2) The Bank shall include third-country branches in the supervisory examination programme referred to in Regulation 87.

Supervisory review and evaluation process

9ZA. (1) The Bank shall review the arrangements, strategies, processes and mechanisms implemented by third-country branches to comply with the provisions that apply to them under these Regulations, the Capital Requirements Regulation and financial services legislation.

• (2) Based on the review referred to in paragraph (1), the Bank shall evaluate whether -

  • (a) the arrangements, strategies, processes and mechanisms implemented by third-country branches, and

  • (b) the capital endowment and liquidity held by them,

  ensure a sound management and coverage of their material risks and the viability of the third-country branches.

• (3) The Bank shall conduct the review and evaluation referred to in paragraphs (1) and (2) in accordance with the criteria for applying the principle of proportionality published in accordance with Regulation 131(1)(c).

• (4) The Bank shall establish a level of frequency and intensity for the review referred to in paragraph (1) that is proportionate to classification as class 1 and class 2 third-country branches and that takes into account other relevant criteria, such as the nature, scale and complexity of the third-country branches’ activities.

• (5) Where the Bank’s review, in particular of the governance arrangements, the business model, or the activities of the third-country branch, gives the Bank reasonable grounds to suspect that, in connection with a third-country branch, money laundering or terrorist financing within the meaning of Article 1 of Directive 2015/849 is being or has been committed or attempted, the Bank shall immediately notify the EBA and the authority that is responsible for supervising the third-country branch in accordance with Directive 2015/849.

• (6) Where the Bank (following liaison with the authority or body that supervises the institution in accordance with the Directive (EU) 2015/849 and is competent for ensuring compliance with that Directive, in a case in which that authority or body is not the Bank) has reasonable grounds to suspect that, in connection with an institution, there is an increased risk of money laundering or terrorist financing –

  • (a) the Bank (together with the authority or body referred to above, where applicable) shall notify its common assessment immediately to the EBA, and

  • (b) the Bank shall take, as appropriate, measures in accordance with these Regulations or other financial services legislation, which may include withdrawing the third-country branch’s authorisation under Regulation 9Q(3)(g).

• (7) The Bank, the financial intelligence unit and the authority that is responsible for supervising the third-country branch in accordance with Directive 2015/849 shall cooperate closely with each other within their respective competences and shall exchange information relevant to these Regulations, provided that such cooperation and information exchange do not impinge on any ongoing inquiry, investigation or proceedings pursuant to the criminal or administrative law of the State where the competent authority, financial intelligence unit or the authority that is responsible for supervising the third-country branch in accordance with Directive (EU) 2015/849 is located.

Supervisory measures and powers

9ZB. (1) The Bank shall require third-country branches to take the necessary measures at an early stage in order to –

- (a) ensure that the third-country branches comply with the requirements that apply to them under these Regulations and under financial services legislation or to restore compliance with those requirements, and

- (b) ensure that the material risks that the third-country branches are exposed to are covered and managed in a sound and sufficient manner and that those branches remain viable.

• (2) For the purposes of paragraph (1), the Banks’ powers shall include, at least, the power to require third-country branches to:

  • (a) hold an amount of capital endowment in excess of the minimum requirements laid down in Regulation 9R or to comply with other additional capital requirements and any such additional capital endowment amount to be held by the third-country branch in accordance with this subparagraph shall comply with the requirements laid down in Regulation 9R;

  • (b) meet other specific liquidity requirements in addition to the requirements laid down in Regulation 9S and any such additional liquid assets to be held by the third-country branch in accordance with this subparagraph shall comply with the requirements laid down in Regulation 9S;

  • (c) reinforce their governance, risk management or booking arrangements;

  • (d) restrict or limit the scope of their business or of the activities they conduct, as well as the counterparties to those activities;

  • (e) reduce the risk inherent in their activities, products and systems, including outsourced activities, and stop engaging in such activities or offering such products;

  • (f) comply with additional reporting requirements in accordance with Regulations 9X(4) or increase the frequency of the regular reporting;

  • (g) make public disclosures.

  Cooperation between competent authorities and colleges of supervisors

  9ZC. (1) The Bank shall cooperate closely and share information with other competent authorities supervising third-country branches and subsidiary institutions of the same third-country group.

• (2) The Bank shall have written coordination and cooperation arrangements in place with other relevant authorities in accordance with Regulation 103.

• (3) For the purposes of paragraph (1), class 1 third-country branches shall be subject to the comprehensive supervision of a college of supervisors in accordance with Regulation 104 and the following requirements shall apply:

  • (a) where a college of supervisors has been established in relation to the subsidiary institutions of a third-country group, the class 1 third-country branches of the same group shall be included within the scope of that college of supervisors;

  • (b) where the third-country group has class 1 third-country branches in more than one Member State but no subsidiary institutions in the Union subject to Regulation 104, a college of supervisors shall be established in relation to those class 1 third-country branches;

  • (c) where the third-country group has class 1 third-country branches in more than one Member State or at least one class 1 third-country branch, and one or more subsidiary institutions in the Union that are not subject to Regulation 104, a college of supervisors shall be established in relation to those third-country branches and subsidiary institutions.

• (4) For the purposes of paragraph (3)(b) and (c), where the Bank is the competent authority with the largest third-country branch in terms of total value of booked assets, it shall act as the lead competent authority.

• (5) In addition to the tasks set out in Regulation 104, the college of supervisors shall:

  • (a) prepare a report on the structure and activities of the third-country group in the Union and update that report on an annual basis;

  • (b) exchange information in accordance with Regulation 105(13) and (14) on the results of the supervisory review and evaluation process referred to in Regulation 9ZA;

  • (c) endeavour to align the application of the supervisory measures and powers referred to in Regulation 9ZB.

• (6) The Bank, as part of the college of supervisors, shall ensure appropriate coordination and cooperation with relevant third-country supervisory authorities, where appropriate.

Notification to EBA

9ZD. The Bank shall notify the EBA of the following:

- (a) all authorisations granted to third-country branches and any subsequent changes to such authorisations;

- (b) the total assets and liabilities booked by the authorised third-country branches, as periodically reported;

- (c) the name of the third-country group to which an authorised third-country branch belongs.”.

Amendment of Regulation 14 of Principal Regulations

11.

• (a) in paragraph (1), by the substitution of “10 working days” for “2 working days”, and

• (b) in paragraph (6) –

• (i) by the insertion of “in writing” after “it shall acknowledge”, and

• (ii) by the substitution of “10 working days” for “2 working days”.

Amendment of Regulation 15 of Principal Regulations

12.

• “(2A) For the purpose of assessing a proposed acquisition in accordance with paragraph (2), with regard to clause (vi) of subparagraph (b) of that paragraph, the Bank, where it is not the authority that supervises the credit institution in accordance with Directive 2015/849, shall consult with the authority or body responsible for supervising the credit institution concerned in accordance with that Directive.”.

Amendment of Regulation 19 of Principal Regulations

13.

• (a) by renumbering the existing provision as paragraph (1), and

• (b) by the insertion of the following paragraphs after paragraph (1):