How are branches included in the scope of resolution funds?

1) What does "Union branches" mean in DR 2015/63: (i) all branches of credit institutions active in the Union regardless of the jurisdiction in which they are established (ii) all branches of credit institutions that are established in the Union (iii) all branches of credit institutions that are established in the EEE? 2) Non-EEE branches are not mentioned in the DR 2015/63. Does that mean that they are excluded from the scope of this regulation or does that mean that they are included as any other 1cinstitutions 1d, as defined in Article 2 §1 23) of BRRD? - If they are included, does that mean that, as the SRB does not include them in the SRF, NRA should include them in their national schemes? - If they are excluded, how will a level playing field among banking entities be guaranteed? 3) Recitals 1 and 2 of DR 2015/63 mention the need of a special framework for EU-branches and even mention a specific delegated act. Is there any project in that field?

The current framework for financing resolution may contain a loophole relative to the non-EEE branches. Article 1, §1 e) of BRRD includes non-EEE branches in the scope of the regulation. ((e) branches of institutions that are established outside the Union in accordance with the specific conditions laid down in this Directive). These branches should therefore be subject to all provisions of BRRD ( 1cin accordance with the specific conditions laid down in this Directive 1d as stated by the above mentioned article). No specific point is made about non-EEE subsidiaries in the article 99-109 concerning resolution financing and no point is made about financing resolution in article 97 concerning cooperation with third countries (including about non-EEE branches). Thus, one could assume that non-EEE subsidiaries are subject to resolution financing as if they were autonomous credit institutions (following the same logic that is applied for prudential requirements). Nevertheless, there is no mention of non-EEE subsidiaries in the delegated regulation on regulation ex ante contributions to resolution financing (DR 2015/63). Therefore, SRB concludes that non-EEE branches are not subject to any contribution to the SRF (see attached). Since the same delegated regulation should be applied for national resolution funds, the same conclusion should be reached for non-EEE branches: they remain out of the scope of resolution financing. This legal analysis is based on the absence of any explicit inclusion of non-EEE branches in the texts defining resolution financing. This view may be challenged arguing that: (i) BRRD explicitly includes non-EEE branches in its scope. Therefore, unless they are explicitly excluded from a provision, they should be submitted to all elements of the resolution framework set by BRRD and the associated delegated acts. (ii) If non-EEE branches are not included in any resolution financing scheme, this would affect the fairness of competition on the internal market. BRRD Article 102: Target level 1. Member States shall ensure that, by 31 December 2024, the available financial means of their financing arrangements reach at least 1 % of the amount of covered deposits of all the institutions authorised in their territory. Member States may set target levels in excess of that amount. Article 2 Definitions 1. For the purposes of this Directive the following definitions apply: (2) 18credit institution 19 means a credit institution as defined in point (1) of Article 4(1) of Regulation (EU) No 575/2013, not including the entities referred to in Article 2(5) of Directive 2013/36/EU; (CRD4 Directive : Article 2 Scope 5. This Directive shall not apply to the following: (11) in France, the 'Caisse des dépôts et consignations') 23) 18institution 19 means a credit institution or an investment firm; DGS2 Directive Article 2 Definitions 1. For the purposes of this Directive the following definitions apply: (9) 18credit institution 19 means a credit institution as defined in point (1) of Article 4(1) of Regulation (EU) No 575/2013; (10) 18branch 19 means a place of business in a Member State which forms a legally dependent part of a credit institution and which carries out directly all or some of the transactions inherent in the business of credit institutions; CRR Article 4 Definitions 1. For the purposes of this Regulation, the following definitions shall apply: (1) 'credit institution' means an undertaking the business of which is to take deposits or other repayable funds from the public and to grant credits for its own account;