TITLE: European Banking Authority Issues Guidelines on Capital Endowment Instruments for Third-Country Branches BODY: On 2 March 2026, the European Banking Authority (EBA) published final guidelines (EBA/GL/2026/03) specifying eligible instruments for third-country branches (TCBs) to meet minimum capital endowment requirements under Article 48e(2)(c) of Directive 2013/36/EU (Capital Requirements Directive). The guidelines establish a harmonised framework for TCBs operating in European Union member states to maintain segregated capital endowment assets that protect local depositors and creditors in resolution or winding-up scenarios. The EBA identified eligible instruments as debt securities receiving a 0% risk weight under the standardised approach for credit risk, including those issued or guaranteed by: central governments or central banks of EU member states; regional or local governments meeting specified conditions; third-country governments applying equivalent supervisory arrangements; public sector entities; multilateral development banks; and international organisations. All instruments must be listed on recognised exchanges and easily monetised. The guidelines impose operational conditions requiring TCBs to maintain capital endowment assets free from encumbrance (except as needed for resolution purposes), monitor geographical concentration and currency alignment with liabilities, and implement continuous monitoring arrangements. Critically, capital endowment asse ... (2123 chars total)

TITLE: European Banking Authority Publishes Final Guidelines on Capital Endowment Instruments for Third-Country Branches BODY: On March 2, 2026, the European Banking Authority (EBA) published its final Guidelines on instruments for the capital endowment requirement for third-country branches under the Capital Requirements Directive (CRD). The Guidelines establish the list of eligible financial instruments that third-country branches may use to meet their capital endowment requirement and specify the minimum operational conditions necessary to ensure these instruments remain available for use. The Guidelines aim to ensure that capital endowment assets protect local depositors at the third-country branch level or remain available to satisfy appropriate claims and local creditors in the event of resolution or winding-up. The EBA has identified as eligible those financial instruments issued or guaranteed by central, regional, or local governments, central banks, public sector entities, multilateral development banks, or international organisations that would receive a 0% risk weight under the standardised approach for credit risk. This eligibility criterion ensures instruments are available to third-country branches for unrestricted and immediate use to absorb risks or losses. The Guidelines also clarify minimum operational conditions that third-country branches must satisfy to ensure capital endowment instruments effectively serve their protective purpose and remain accessib ... (2046 chars total)