Question
How should “branches of institutions that are established outside the Union […]” in Article 1 (1) (e) be interpreted?
Background on the question
According to Article (1) (1) (e) of Directive 2014/59/EU (BRRD), the provisions of the BRRD apply to “branches of institutions that are established outside the Union […]”. This text does not appear to establish whether it is “institutions” that are established outside the Union” or it is “branches” that are established outside the Union.
Answer
For the purposes of clarity Article (1) (1) (e) of Directive 2014/59/EU (BRRD) should be interpreted as meaning branches operating within the Union of Institutions established outside of the Union. Disclaimer: This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General Financial Stability, Financial Services and Capital Markets Union) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.