Recital 19

(19) For reasons of proportionality, the minimum requirements imposed on third-country branches should be relative to the risk that they pose to financial stability and market integrity in the Union and the Member States. Third-country branches should, therefore, be classified as either class 1, where they are deemed riskier, or, otherwise, as class 2, where they are considered to be small and non-complex and not to pose a significant financial stability risk, consistent with the definition of ‘small and non-complex institution’ in Regulation (EU) No 575/2013. Accordingly, third-country branches with booked assets in a Member State in an amount equal to or greater than EUR 5 billion should be regarded as posing such a higher risk due to their larger size and complexity, because their failure could lead to a significant disruption of the banking services market or the banking system of the Member State. Third-country branches authorised to accept retail deposits should similarly be regarded as riskier regardless of their size where the amount of such retail deposits exceeds a certain threshold, insofar as their failure could affect highly vulnerable depositors and could lead to a loss of confidence in the safety and soundness of the banking system of the Member State and its ability to protect citizens’ savings. Both types of third-country branch should, therefore, be classified as class 1 third-country branches.

← Recital 18 · All articles · Recital 20 →

Source: EUR-Lex CELLAR · retrieved 2026-09-04 · Text as adopted (Official Journal); later amendments are not incorporated in this text.