Third country bank branches

This chapter addresses the new CRD VI regime governing third country branches. This regime imposes an authorization requirement and related ongoing obligations on branches of third country undertakings providing specified banking services (in effect, the core banking services of deposit-taking and lending). Relatedly, it prohibits the remote provision of core banking services in the EU by third country undertakings: EU establishment, whether through a branch or subsidiary, is required. A new harmonized regime addressing the internal governance of third country branches will apply as a result. This chapter examines the origins of this internal governance regime, its main features, and the context which has shaped its construction.