Question ID
2018_3757
Legal act
Directive 2014/59/EU (BRRD)
Topic
Cross-border resolution
Article
96
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Not applicable
Article/Paragraph
n.a.
Type of submitter
Other
Subject matter
Transposition of Article 96
Question

Should the national provisions which are going to transpose Article 96 only provide for the resolution of branches of a third-country institution located in the same Member State?

Background on the question

Even though “Union branch”, as provided in Article 2(1)(89) of Directive 2014/59/EU (BRRD), means a branch located in a Member state of a third-country institution, the national provisions which are going to transpose Article 96 should only provide for the resolution of branches located in the same Member State country of a third-country institution. Is this interpretation correct?

Submission date
Final publishing date
Final answer

The national provisions which are going to transpose Article 96 of Directive 2014/59/EU (BRRD) shall only provide for the resolution of branches of a third-country institution which are located in the Member State transposing the BRRD provision.

Disclaimer:

This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General Financial Stability, Financial Services and Capital Markets Union) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.

Status
Final Q&A
Answer prepared by
Answer prepared by the European Commission because it is a matter of interpretation of Union law.
Note to Q&A

Update 26.03.2021: This Q&A has been reviewed in the light of the changes introduced to Directive 2014/59/EU (BRRD) and continues to be relevant.

Disclaimer

The Q&A refers to the provisions in force on the day of their publication. The EBA does not systematically review published Q&As following the amendment of legislative acts. Users of the Q&A tool should therefore check the date of publication of the Q&A and whether the provisions referred to in the answer remain the same.