Passporting for Credit Institutions

If a credit institution is granted a banking licence authorisation in one Member State, they can passport throughout the rest of the European Union without needing to establish a subsidiary in another Member State. You can either establish a branch in another Member State or provide services in another Member State without a physical presence in the Member State. Both of these options are subject to notification requirements.

In accordance with Article 35 of the Capital Requirements Directive 2013/36/EC (CRD IV) any EEA credit institution wishing to exercise the freedom to provide services within another EEA Member State by establishing a branch shall notify the competent authorities of the home Member State of their intention to do so.

Similarly, in accordance with Article 39 of CRD IV any EEA credit institution wishing to exercise the freedom to provide services on a cross border basis within another EEA Member State shall notify the competent authorities of the home Member State of their intention to do so.

The SSM has changed the identities of the authorities carrying out the tasks of the home and host state regulator referred to above. The SSM Framework Regulation defines the roles of the ECB and the National Competent Authority (NCA) with regard to the right to establish a branch or the Freedom to provide services in this regard.

The SSM has created a number of passporting regimes such as passporting within the SSM, outgoing passporting from inside the SSM and incoming passporting from outside the SSM.

For credit institutions within the SSM wishing to establish a branch /provide services within the SSM, the ECB will be the home authority for significant banks and the NCA for less significant banks.

For credit institutions within the SSM wishing to establish a branch /provide services outside the SSM, the ECB will be the home authority for significant banks and the NCA for less significant banks.

For credit institutions outside of the SSM wishing to establish a branch/provide services inside the SSM, the ECB will be the host authority where a branch is significant while the NCA will be the host for a less significant branch.

The Central Bank of Ireland will be the NCA in the appropriate circumstances outlined above.

As of 27 September 2021, the IMAS portal is to be used for the submission of passporting notifications for both significant institutions and less significant institutions.

Any significant or less significant institution with queries on the above, should contact its supervision team.

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