(1) Section 53(1) applies to a branch of an undertaking with its registered office in a third country exclusively in accordance with sections 53ca to 53cq, where, subject to the second sentence, one of the following conditions is met (CRD third-country branch): 1. the undertaking would be a CRR credit institution under section 1(3d) if it had its registered office in the European Union, and the branch provides at least one of the activities under Annex I, point 2 or point 6, of Directive 2013/36/EU, as amended on 27 November 2024, or 2. the branch provides one of the activities under Annex I, point 1, of Directive 2013/36/EU, as amended on 27 November 2024. The first sentence does not apply where the branch provides only services under Annex I, Section A, of Directive 2014/65/EU, as amended on 23 October 2024, or ancillary services, such as the deposit-taking or the granting of credits or loans connected with these, for the purposes of providing services under the said Directive.
(2) The head undertaking is the undertaking with its registered office in a third country that has established the CRD third-country branch domestically, and any intermediate or ultimate parent undertaking of that undertaking, where applicable.
(3) Section 53(2a) to (6) applies correspondingly.
Section 53ca
Classification of CRD third-country branches into risk classes
(1) A CRD third-country branch is deemed a CRD third-country branch of risk class 1 where one of the following conditions is met: 1. the total value of the assets booked or initiated by the CRD third-country branch domestically amounts, according to the report for the immediately preceding annual reporting period under sections 53ck and 53cl, to at least EUR 5 billion; 2. the CRD third-country branch's authorised activities include the taking of deposits or other repayable funds from retail clients within the meaning of section 67(3) of the Securities Trading Act, and the amount of these deposits and other repayable funds amounts to at least 5 percent of the branch's total liabilities or exceeds EUR 50 million; or 3. the CRD third-country branch is not a qualified CRD third-country branch under section 53cb.
(2) Where a CRD third-country branch meets none of the conditions under subsection (1), it is deemed a CRD third-country branch of risk class 2.
(3) Where a CRD third-country branch of risk class 1 no longer meets any condition under subsection (1), it is deemed, without delay, a CRD third-country branch of risk class 2. Where a CRD third-country branch of risk class 2 meets one of the conditions under subsection (1), it is deemed, upon expiry of four months from the date on which it met that condition, a CRD third-country branch of risk class 1.
(4) The CRD third-country branch must notify the Federal Institute and the Deutsche Bundesbank without delay of a circumstance under subsection (3), first or second sentence.
Section 53cb
Qualified CRD third-country branches
(1) A CRD third-country branch is deemed a qualified CRD third-country branch where all of the following conditions are met: 1. the supervisory standards applied and the supervision conducted in the head undertaking's home state, under that state's regulatory framework for banking, correspond at least to the requirements of Directive 2013/36/EU, as amended on 27 November 2024, and Regulation (EU) No 575/2013; 2. the supervisory authorities responsible for the head undertaking are subject to confidentiality obligations that are at least equivalent to the requirements of Title VII, Chapter 1, Section II, of Directive 2013/36/EU, as amended on 27 November 2024; and 3. the head undertaking's home state is not listed, on the basis of Article 9 of Directive (EU) 2015/849, in Delegated Regulation (EU) 2016/1675, as a high-risk third country that has strategic deficiencies in its national system for combating money laundering and terrorist financing.
(2) After receiving a licence application, the Federal Institute examines whether the conditions under subsection (1) and section 53ca are met. Where the third country concerned is not listed in the European Banking Authority's public register of third countries and third-country supervisory authorities under Article 48b(4) of Directive 2013/36/EU, as amended on 27 November 2024, the Federal Institute requests the European Commission to assess the third country's regulatory framework for banking and its confidentiality obligations for the purposes of Article 48b(2) of Directive 2013/36/EU, as amended on 27 November 2024, unless the head undertaking's home state is a high-risk third country under subsection (1), point 3. Before an assessment by the European Commission under the second sentence, the CRD third-country branch concerned is deemed a CRD third-country branch of risk class 1.
Section 53cc
Conditions for granting authorisation
(1) A CRD third-country branch requires the written or electronic authorisation of the Federal Institute where it intends to provide the services named in section 53c(1), first sentence, domestically on a commercial basis or on a scale that requires a commercially organised business operation.
(2) Before the CRD third-country branch commences its activity, the Federal Institute endeavours to conclude administrative arrangements or other arrangements with the competent supervisory authorities of the third country. Such arrangements should be based on the templates drawn up by the European Banking Authority under Article 33(5) of Regulation (EU) No 1093/2010. The Federal Institute transmits to the European Banking Authority, without delay, information about any administrative and other arrangements concluded with the competent supervisory authorities of a third country.
(3) Section 32(1), fifth and sixth sentences, applies correspondingly. The business plan under section 32(1), fifth sentence, point 5, must set out the planned business activity, the planned services under section 53c(1), the organisational structure, and the risk management under section 53cg.
(4) Authorisation may be granted only where all of the following conditions are met: 1. the CRD third-country branch meets the minimum regulatory requirements under sections 53ce to 53ch; 2. the activities for which authorisation is applied for are covered by, and supervised under, the head undertaking's authorisation in the third country; 3. the supervisory authority in the third country has been informed of the licence application, and the licence application, including the business plan, has been submitted to it; 4. for the purposes of exercising its supervisory tasks, the Federal Institute is able to access, from the supervisory authorities responsible for the head undertaking in the third country, all necessary information about that undertaking, and to effectively coordinate supervisory activities, in particular in times of crisis or financial distress affecting the head undertaking, its group, or the third country's financial system; and 5. there is no reasonable suspicion that the CRD third-country branch is used for the purposes of money laundering or terrorist financing, or is intended to facilitate the commission of such offences. To assess whether a reasonable suspicion exists under the first sentence, point 5, the Federal Institute consults the authority responsible domestically, under Directive (EU) 2015/849, as amended on 31 May 2024, for the supervision of the combating of money laundering or terrorist financing, and, before granting authorisation, obtains written or electronic confirmation that no such suspicion exists.
(5) The activities for which the CRD third-country branch is granted authorisation may be exercised only domestically. This does not apply to 1. intra-group financing transactions with other CRD third-country branches of the head undertaking, and 2. services procured solely at the customer's or counterparty's initiative. In the authorisation decision, the Federal Institute must point out the prohibition under the first sentence and expressly prohibit the cross-border offering and exercise of these activities in other member states, subject to the exceptions under the second sentence.
(6) The Federal Institute may decide that authorisations granted by 10 January 2027 continue to apply, where the CRD third-country branches concerned meet the requirements under sections 53ca to 53cq.
(7) Section 32(2) and (3) to (5) applies correspondingly.
Section 53cd
Grounds for refusal, expiry, and revocation
(1) Authorisation must be refused where 1. the conditions for granting authorisation under section 53cc(4) are not met, or 2. the head undertaking or its group does not meet the supervisory requirements that apply to the head undertaking or the group in the third country concerned, or there is a reasonable suspicion that this circumstance will arise within the next twelve months. The occurrence of a circumstance under the first sentence, point 2, must be notified to the Federal Institute without delay.
(2) Authorisation expires where it is not used within one year of being granted. Section 35(1), second sentence, applies correspondingly.
(3) In addition to the provisions of the Administrative Procedure Act, the Federal Institute may revoke the authorisation where 1. a ground for refusal under subsection (1) exists; the notification duty under subsection (1), second sentence, applies correspondingly; 2. the business operation to which the authorisation relates has not been carried on for more than six months; 3. the authorisation was obtained on the basis of false information or otherwise unlawfully; 4. one or more conditions or requirements on the basis of which the authorisation was granted are no longer met; 5. the CRD third-country branch offers no guarantee that it will fulfil its obligations towards its creditors, in particular as to the security of the assets entrusted to it by depositors; or 6. there is a reasonable suspicion that money laundering or terrorist financing is taking place or has taken place in connection with the CRD third-country branch, the head undertaking, or its group, or that such offences have been attempted, or that there is an elevated risk in this regard. For the purpose of assessing whether a suspicion exists under the first sentence, point 6, the Federal Institute consults the authority responsible under Directive (EU) 2015/849, as amended on 31 May 2024, for the supervision of the combating of money laundering or terrorist financing.
(4) Sections 33 and 35 apply correspondingly.
Section 53ce
Capital endowment
(1) CRD third-country branches must at all times maintain a minimum capital endowment in the following amount: 1. CRD third-country branch of risk class 1: 2.5 percent of the average liabilities of the three immediately preceding annual reporting periods, or, in the case of a newly authorised CRD third-country branch, based on the liabilities at the time authorisation is granted, according to the report under sections 53ck and 53cl, but at least EUR 10 million; 2. CRD third-country branch of risk class 2: 0.5 percent of the average liabilities of the three immediately preceding annual reporting periods, or, in the case of a newly authorised CRD third-country branch, based on the liabilities at the time authorisation is granted, according to the report under sections 53ck and 53cl, but at least EUR 5 million.
(2) The minimum capital endowment under subsection (1) must be maintained in the form of assets in the following instruments: 1. cash or cash-like instruments within the meaning of Article 4(1), point 60, of Regulation (EU) No 575/2013, as amended on 17 June 2025, 2. debt securities of member states of the European Union or their central banks, or 3. any other instrument that is available to the branch without restriction and directly for the immediate coverage of risks or losses.
(3) The instruments under subsection (2) must be deposited in a settlement account with a CRR credit institution domestically that is not part of the head undertaking's group, or, at the Deutsche Bundesbank's discretion, in a settlement account with the Deutsche Bundesbank. The instruments must be available for the purposes of winding up the CRD third-country branch and, in the event of the resolution of the CRD third-country branch, for the purposes of section 171 of the Recovery and Resolution Act.
Section 53cf
Liquidity requirements
(1) For CRD third-country branches of risk class 1, the liquidity requirements under Part 6, Title I, of Regulation (EU) No 575/2013, as amended on 17 June 2025, and Delegated Regulation (EU) 2015/61, as amended on 10 February 2022, apply.
(2) CRD third-country branches of risk class 2 must at all times hold unencumbered liquid assets in a volume sufficient to cover liquidity outflows over a period of at least 30 days. For this purpose, the liquid assets must be deposited in an account with the Bundesbank or with a CRR credit institution domestically that is not part of the head undertaking's group.
(3) Where liquid assets remain after being used to cover liquidity outflows, these must be available for the purposes of winding up the CRD third-country branch and, in the event of the resolution of the CRD third-country branch, for the purposes of section 171 of the Recovery and Resolution Act.
(4) The Federal Institute may exempt qualified CRD third-country branches within the meaning of section 53cb from the liquidity requirement under this provision.
Section 53cg
Internal governance and risk management
(1) CRD third-country branches must appoint two natural persons domiciled domestically who are authorised, for the CRD third-country branch's business area, to manage and represent the undertaking. Such persons are deemed managers. They must be registered for entry in the commercial register.
(2) CRD third-country branches of risk class 1 must comply with the following requirements: 1. section 24(1), points 1, 2, and 14 to 14b, and (1a), points 3, 5, and 6, and (1c) and (1d), in conjunction with the statutory instrument under section 24(4); 2. sections 18a, 24c, 25a(1), with the exception of the third sentence, point 2, and (5) to (5c), in conjunction with the statutory instrument under subsection (6), sections 25b, 25c(1), (3), and (4a), sections 25g to 25k and 25m, and section 26c(1), first sentence, points 2 to 6, and (4); and 3. section 25d(5) and (7) and (12), first sentence, with regard to the appointment of a remuneration control committee in accordance with subsection (7), first sentence, thereof, on the basis that the head undertaking's administrative or supervisory body is deemed the administrative or supervisory body of the CRD third-country branch. The Federal Institute may require a CRD third-country branch of risk class 1 to establish a management committee domestically that ensures appropriate governance of the CRD third-country branch.
(3) CRD third-country branches of risk class 2 must comply with the requirements under subsection (2), points 1 to 3, with the exception of section 25c(4a), first sentence, point 3, letter i. They may also combine the risk control function and the compliance function with other functions or business areas, provided this does not give rise to material conflicts of interest. By way of derogation from the first and second sentences, CRD third-country branches of risk class 2 must fully comply with the requirements under subsection (2), points 1 to 3, where the Federal Institute requires this of the CRD third-country branch depending on its size and internal organisation, and the nature, scale, and complexity of its activities.
(4) CRD third-country branches must establish reporting duties to the head undertaking's management body that cover all material risks and risk management policies and any changes to them, and must further maintain appropriate information and communication technology systems and carry out controls to ensure proper compliance with these policies. CRD third-country branches must apply the requirements of Article 16 of Regulation (EU) 2022/2554, as amended on 14 December 2022 (simplified ICT risk management framework).
(5) CRD third-country branches must monitor and manage their outsourcing arrangements and ensure that the Federal Institute and the Deutsche Bundesbank have unrestricted access to all information they need to exercise their supervisory function.
(6) CRD third-country branches that conduct back-to-back transactions or intra-group transactions must maintain adequate resources to identify and appropriately manage their counterparty default risk, where material risks connected with assets booked by the CRD third-country branches are transferred to a counterparty.
(7) Where the head undertaking performs critical or important functions of the CRD third-country branches, it must perform these functions in accordance with the CRD third-country branch's rules or intra-group rules. The Federal Institute and the Deutsche Bundesbank must be granted access to all information they need to exercise their supervisory function.
(8) The implementation and ongoing compliance with the requirements of subsections (1) and (4) to (7) and of the provisions named in subsections (2) and (3) must be assessed annually by an auditor of the annual financial statements as part of the audit of the annual financial statements under section 53ch(2). The auditor must submit to the Federal Institute and the Deutsche Bundesbank a report with its findings and conclusions. Sections 26, 28, and 29, in conjunction with the statutory instrument under section 29(4), apply correspondingly to the audit of the annual financial statements.
Section 53ch
Booking and accounting provisions
(1) A CRD third-country branch is obliged, in accordance with the regulatory technical standards issued under Article 48h(4) of Directive 2013/36/EU, as amended on 27 November 2024, to keep separate books on the business it conducts and on the undertaking's assets serving its business operation, and to render account to the Federal Institute and the Deutsche Bundesbank. The provisions of the Third Book of the Commercial Code on commercial books apply correspondingly in this regard. On the liabilities side of the annual statement of assets, the amount of the operating capital made available to the CRD third-country branch by the head undertaking, and the amount of the operating surpluses left with the CRD third-country branch to strengthen its own funds, are to be shown separately. The excess of the liability items over the asset items, or the excess of the asset items over the liability items, is to be shown undivided and separately at the end of the statement of assets.
(2) The statement of assets to be drawn up under subsection (1) as at the end of each financial year, together with an income statement and notes, is deemed the annual financial statements under section 26. Section 340k of the Commercial Code applies correspondingly to the audit of the annual financial statements, on the basis that the auditor is elected and appointed by the managers. The head undertaking's annual financial statements for the same financial year must be submitted together with the CRD third-country branch's annual financial statements.
Section 53ci
Duty to establish a subsidiary undertaking
(1) The Federal Institute may require a CRD third-country branch to apply for authorisation under section 32, in particular where 1. the CRD third-country branch conducts or has conducted one of the activities named in section 53c(1) with customers or counterparties in other member states, notwithstanding the exceptions under section 53cc(5), second sentence, 2. the CRD third-country branch meets the indicators of systemic importance named in section 10g(2), or is assessed as systemically important under subsection (2), and poses significant risks to the financial stability of the European Union or the Federal Republic of Germany, 3. the total amount of all assets held by CRD third-country branches of the same third-country group in the European Union reaches or exceeds EUR 40 billion, or 4. the amount of the assets of the CRD third-country branches domestically reaches or exceeds EUR 10 billion. The power under the first sentence may be exercised after measures under section 53cj or section 53co, where applicable, have been applied, or where it can be demonstrated, for reasons other than those named in the first sentence, that the aforementioned measures would not be sufficient to address the material supervisory concerns.
(2) Before exercising the power under subsection (1), the Federal Institute consults the European Banking Authority, the Deutsche Bundesbank, and the competent supervisory authorities of the member states in which the third-country group concerned has established other CRD third-country branches or subsidiary institutions. For the purposes of subsection (1), first sentence, points 2 to 4, and when carrying out the assessment under section 53cj, the Federal Institute takes into account the following indicators for assessing the systemic importance of CRD third-country branches: 1. the size of the CRD third-country branch; 2. the complexity of the CRD third-country branch's structure, organisation, and business model; 3. the degree of interconnectedness of the CRD third-country branch with the financial system of the European Union and of the member state in which it is established; 4. the substitutability of the activities, services, business, or financial infrastructure provided by the CRD third-country branch; 5. the market share of the CRD third-country branch in the European Union and domestically, measured by total banking assets and by the activities and services it provides; 6. the likely effects of a suspension or cessation of the business or the entire activities of the CRD third-country branch on the liquidity of the domestic financial system or on the payment, clearing, and settlement systems in the European Union and domestically; 7. the role and importance of the CRD third-country branch for the activities, services, and business of the third-country group in the European Union and domestically; 8. the role and importance of the CRD third-country branch in the context of resolution and winding-up, on the basis of information from the resolution authority under section 3(1) of the Recovery and Resolution Act; and 9. the scale of the third-country group's business conducted through CRD third-country branches in relation to the business of that third-country group conducted through subsidiary institutions authorised in the European Union and domestically.
Section 53cj
Assessment of systemic importance
(1) CRD third-country branches are to be subjected to an assessment under subsection (2) where the total amount of all assets held by CRD third-country branches of the same third-country group in the European Union reaches or exceeds EUR 40 billion, on the basis of either 1. the average of the three immediately preceding annual reporting periods, or 2. the absolute figures in at least three of the five immediately preceding annual reporting periods. Assets held by the CRD third-country branch in connection with central bank market operations with central banks of the European System of Central Banks are disregarded in this calculation.
(2) In the case under subsection (1), the Federal Institute assesses whether the CRD third-country branch concerned, as supervised domestically, is systemically important and associated with significant risks to the financial stability of the European Union or the Federal Republic of Germany. For this purpose, the Federal Institute takes into account whether the CRD third-country branch concerned meets the indicators of systemic importance named in sections 53ci and 10g(2).
(3) As part of the assessment under subsection (2), the Federal Institute consults the European Banking Authority and the Deutsche Bundesbank. The Federal Institute also consults the competent supervisory authorities of the member states in which the third-country group concerned has established other CRD third-country branches or subsidiary institutions, in order to assess the risks to financial stability that the domestically supervised CRD third-country branch poses for the other member states concerned. The Federal Institute transmits its reasoned assessment of systemic importance under subsection (2) to the European Banking Authority, the Deutsche Bundesbank, and the supervisory authorities under the second sentence. Where the supervisory authorities under the second sentence do not agree with the assessment, the Federal Institute, with the support of the European Banking Authority, endeavours to reach consensus on the assessment under subsection (2) and any targeted requirements under subsection (4) no later than three months after the day on which the supervisory authorities under the second sentence raised objections. After expiry of this period, the Federal Institute decides conclusively on the assessment of the systemic importance of the CRD third-country branch concerned domestically and on any targeted requirements under subsection (4).
(4) Where this is appropriate to address the risks identified, the Federal Institute may subject the CRD third-country branch concerned domestically to targeted requirements; in particular, it may 1. require the CRD third-country branch to restructure its assets or activities so that it is no longer systemically important within the meaning of subsection (2), or so that it no longer poses an inappropriate risk to the financial stability of the European Union or the Federal Republic of Germany, and 2. impose additional supervisory requirements on the CRD third-country branch. Where the Federal Institute is of the opinion that a CRD third-country branch is of systemic importance, but nonetheless decides not to exercise any of the powers under the first sentence, point 1, or under section 53ci, it transmits a reasoned notification of its decision to the European Banking Authority, the Deutsche Bundesbank, and the supervisory authorities under subsection (3), second sentence.
(5) Where the Federal Institute is consulted by a foreign competent supervisory authority, in correspondence with subsection (3), on the assessment of a foreign CRD third-country branch, and the Federal Institute does not agree with the assessment, it informs the foreign competent supervisory authority of this within ten working days of the day the assessment is received. The Federal Institute, with the support of the European Banking Authority, endeavours to reach consensus on the assessment and on any targeted requirements under Article 48j(4) of Directive 2013/36/EU, as amended on 27 November 2024. After expiry of this period, the foreign competent supervisory authority decides conclusively on the assessment of the systemic importance of the foreign CRD third-country branch and on any targeted requirements under Article 48j(4) of Directive 2013/36/EU, as amended on 27 November 2024.
Section 53ck
Reporting duties
(1) CRD third-country branches must transmit the following to the Deutsche Bundesbank: 1. particulars of the assets and liabilities booked by the CRD third-country branch in accordance with section 53ch and initiated by the CRD third-country branch, broken down by a) the largest recorded assets and liabilities, broken down by sector and type of counterparty, in particular exposures to the financial sector; b) significant concentrations of exposures and funding sources in relation to particular types of counterparty; and c) significant intra-group transactions with the head undertaking and members of the head undertaking's group; 2. particulars of compliance with the requirements that apply to CRD third-country branches under this Act or that have been imposed on them on the basis of this Act, 3. particulars, on an ad hoc basis, of the deposit guarantee schemes available to depositors of the CRD third-country branch in accordance with Article 15(2) and (3) of Directive 2014/49/EU, as amended on 16 April 2014, and 4. particulars of additional regulatory requirements imposed on CRD third-country branches under this Act. For the purposes of reporting the information on the assets and liabilities booked under the first sentence, point 1, CRD third-country branches apply the provisions of the Third Book of the Commercial Code.
(2) CRD third-country branches must transmit the following particulars concerning their head undertaking: 1. at regular intervals, aggregated information on the assets and liabilities held or booked by the subsidiary undertakings and other CRD third-country branches of the third-country group in the European Economic Area, 2. at regular intervals, information on the head undertaking's compliance with the applicable supervisory requirements on an individual and a consolidated basis, 3. on an ad hoc basis, information on material supervisory reviews and assessments of the head undertaking and on relevant supervisory decisions, 4. the head undertaking's recovery plans and the specific measures that could be taken in relation to the CRD third-country branches in accordance with these plans, and any subsequent updates and amendments to these plans, 5. the head undertaking's business strategy in relation to the CRD third-country branches and any subsequent changes to this strategy, and 6. the services that the head undertaking provides solely at the initiative of customers or counterparties resident or established in the European Economic Area.
(3) The Federal Institute and the Deutsche Bundesbank may impose additional reporting duties on CRD third-country branches where they consider the additional information necessary to obtain a comprehensive overview of the business, activities, or financial soundness of the CRD third-country branches or their head undertaking, or to review compliance with the applicable legal provisions by the CRD third-country branches and the head undertaking, and to ensure that the CRD third-country branches comply with these legal provisions.
Section 53cl
Frequency of reporting
(1) The reporting duties under section 53ck(3) must be proportionate to the CRD third-country branch's classification into risk class 1 or 2.
(2) The regulatory and financial information named in section 53ck must be reported, in accordance with the implementing technical standards based on Article 48l(1) of Directive 2013/36/EU, as amended on 27 November 2024, by CRD third-country branches of risk class 1 at least semi-annually and by CRD third-country branches of risk class 2 at least annually.
(3) The Federal Institute may exempt qualified CRD third-country branches under section 53cb, in whole or in part, from the duty to report information on the head undertaking under section 53ck(2), where it is able to obtain the relevant information directly from the supervisory authorities of the third country concerned.
Section 53cm
Supervisory examination programme
(1) The Federal Institute complies with Title VII of Directive 2013/36/EU, as amended on 27 November 2024, for the purposes of supervising CRD third-country branches.
(2) It includes CRD third-country branches in its supervisory planning.
Section 53cn
Supervisory review and evaluation
(1) The Federal Institute reviews the arrangements, strategies, procedures, and mechanisms that CRD third-country branches have put in place to comply with the provisions of this Act applicable to them. In doing so, it cooperates with the Deutsche Bundesbank in accordance with section 7.
(2) On the basis of the review under subsection (1), it assesses whether the arrangements, strategies, procedures, and mechanisms put in place by the CRD third-country branches, as well as their capital endowment and liquidity, ensure sound management and sound coverage of their material risks, and the viability of the CRD third-country branch.
(3) The Federal Institute carries out the review and assessment named in subsections (1) and (2) in accordance with the criteria for applying the principle of proportionality under section 6b(4). In particular, the Federal Institute determines the frequency and intensity of the review named in subsection (1), which must be proportionate to the CRD third-country branch's classification into risk class 1 or 2 and take into account the nature, scale, and complexity of the CRD third-country branch's activities.
(4) Section 7b(2), point 12, applies correspondingly to CRD third-country branches. The notification under the first sentence must also be made to the authority responsible for the supervision of the CRD third-country branch under Directive (EU) 2015/849, as amended on 31 May 2024. Where there is an elevated risk of money laundering or terrorist financing, the Federal Institute and the authority under the second sentence contact the European Banking Authority in order to transmit their joint assessment without delay. The Federal Institute takes the necessary measures under this Act, where required. These may also include revocation of the CRD third-country branch's authorisation under section 53cd(3), first sentence, point 6.
(5) The Federal Institute, the central reporting offices, and the authority that supervises the CRD third-country branch under Directive (EU) 2015/849, as amended on 31 May 2024, cooperate closely within their respective areas of responsibility and exchange information relevant to this Act, provided this cooperation and exchange of information does not prejudice any ongoing investigations, inquiries, or proceedings under criminal or administrative law. Where this information includes personal data within the meaning of Regulation (EU) 2016/679, this information must be transmitted insofar as it is necessary for performing tasks under Directive 2013/36/EU, as amended on 27 November 2024.
Section 53co
Supervisory measures
(1) The Federal Institute requires CRD third-country branches to take the necessary measures at an early stage to ensure that 1. the CRD third-country branches comply with the requirements applicable to them under this Act, or that compliance with these requirements is restored, and 2. the material risks to which the CRD third-country branch is exposed are soundly and adequately covered and controlled, and the CRD third-country branch remains viable.
(2) For the purposes of subsection (1), the Federal Institute may in particular require CRD third-country branches to 1. maintain a capital endowment exceeding the minimum requirements laid down in section 53ce(1), in accordance with subsections (2) and (3) thereof, or meet other additional capital requirements; 2. meet further specific liquidity requirements in addition to the requirements laid down in section 53cf; any additional liquid assets under this point must meet the requirements laid down in section 53cf; 3. strengthen their governance arrangements, risk management, and booking rules; 4. restrict or limit the scale of their business or the activities they carry out, and the counterparties to these activities; 5. reduce the risk connected with their activities, products, and systems, including their outsourcing activities, and cease the exercise or offering of such activities or products; 6. meet additional reporting duties in accordance with section 53ck(3), or increase the frequency of regular reporting; and 7. make disclosures.
(3) The supervisory powers under the following provisions also apply correspondingly to CRD third-country branches: 1. section 3(4) and sections 4, 6 to 6b; 2. sections 23 and 24c; 3. section 25a(2), section 25b(4) and (4a), section 25c(4c) and (5); 4. section 25g(3), section 25h(2), third sentence, (4), second sentence, (5) and (7), second sentence, section 25i(4); 5. sections 30 and 31, 33a, 34, and sections 36 to 39; 6. sections 44 to 45 and 45b to 46b; and 7. sections 46b, 46g, 47 to 48u, and 50. For the purposes of applying section 36(1), the CRD third-country branch is deemed a legal person.
(4) Section 46d(1), second and third sentences, applies correspondingly.
(5) The duties under section 44(1), first sentence, to the Federal Institute and the Deutsche Bundesbank to provide information and submit documents also apply to the head undertaking, the members of its governing bodies, and its employees. A person obliged under the first sentence to provide information may refuse to answer questions where answering them would expose that person or a relative named in section 383(1), points 1 to 3, of the Code of Civil Procedure to the risk of criminal prosecution or of proceedings under the Act on Regulatory Offences.
Section 53cp
Cooperation and supervisory colleges
(1) The Federal Institute cooperates closely with, and exchanges information with, the competent supervisory authorities of the member states in which the third-country group concerned has established other CRD third-country branches or subsidiary institutions. It concludes with them written coordination and cooperation arrangements within the meaning of section 8a(2).
(2) For the purposes of subsection (1), CRD third-country branches of risk class 1 are subject, correspondingly to section 8e, to supervision by a supervisory college on the following basis: 1. where a supervisory college has already been established in respect of a third-country group's subsidiary institutions, CRD third-country branches of risk class 1 are to be brought within that supervisory college's area of responsibility; 2. where a third-country group maintains more than one CRD third-country branch of risk class 1 in more than one member state, but no subsidiary institutions subject to Article 116 of Directive 2013/36/EU, as amended on 27 November 2024, in the European Union, a supervisory college is to be established in respect of these CRD third-country branches of risk class 1; and 3. where a third-country group maintains more than one CRD third-country branch of risk class 1 in more than one member state, or at least one CRD third-country branch of risk class 1 and one or more subsidiary institutions in the European Union not subject to Article 116 of Directive 2013/36/EU, as amended on 27 November 2024, a supervisory college is to be established in respect of these CRD third-country branches and subsidiary institutions.
(3) The Federal Institute is the lead competent authority within the meaning of Article 48o(3) of Directive 2013/36/EU, as amended on 27 November 2024, where it is the supervisory authority of the member state with the third-country group's largest CRD third-country branch, measured by the total value of booked assets. In that case, for the purposes of subsection (2), points 2 and 3, the Federal Institute performs the role corresponding to the supervisory authority under section 8e that is responsible for supervision on a consolidated basis of an institutional group, financial holding group, or mixed financial holding group.
(4) In addition to the tasks under section 8e, the supervisory college must 1. draw up a report on the structure and activities of the third-country group in the European Union, and update it annually; 2. exchange information on the results of the process of supervisory review and evaluation named in section 53cn; and 3. endeavour to align the application of the supervisory powers and measures named in section 53co.
(5) Where necessary, the supervisory college must ensure appropriate coordination and cooperation with the relevant third-country supervisory authorities.
Section 53cq
Notification to the European Banking Authority
Section 2g(5) and section 7b(2), point 1a, apply correspondingly to CRD third-country branches.