New reporting obligations for branches of foreign banks in the EU: what changes in 2026

Key data

European branches of banks headquartered outside the EU face a new compliance obligation. The Implementing Regulation (EU) 2026/1757, published on 27 July 2026, establishes the technical standards of implementation that determine how these entities must communicate information to European supervisors: which templates to use, in what format and with what frequency.

The change is not minor. Until now, each Member State had discretion to apply its own supervisory criteria to these branches. With this regulation, that discretion disappears: the rules are harmonized at community level, which requires reviewing and adapting the internal reporting systems of each affected entity.

What does this regulation establish?

Regulation 2026/1757 develops the technical standards of implementation provided for in the CRD Directive (2013/36/UE), the European directive that regulates access to the activity of credit institutions and their prudential supervision. Specifically, it regulates the obligation to communicate information from branches of third-country credit institutions.

The three pillars of the new framework are:

• Harmonized templates: Common reporting models are defined that all affected branches must use, eliminating the formats specific to each Member State.
• Standardized technical formats: Data must be sent in the technical formats established by the regulation, which implies adapting the systems for extracting and sending information.
• Defined reporting frequencies: The deadlines and periodicities with which branches must submit information to supervisory authorities are set.

The result is a significant reduction in national discretion: supervisors in each country can no longer require formats or periodicities different from those set by the community regulation.

Economic and operational impact

The main impact of this regulation is operational and technological. Affected branches will need to review and, in many cases, modify their internal reporting systems to comply with the new technical standards. This may involve:

• Update or replacement of tools for extracting and sending regulatory data.
• Training of the compliance and technology team.
• Review of internal processes for validation and submission of supervisory information.
• Coordination with national supervisors for the transition to the new framework.

The regulation expressly acknowledges that the cost of adaptation can be significant for smaller branches. Entities with presence in several Member States, on the other hand, will benefit from harmonization: instead of maintaining multiple reporting formats for different national supervisors, they will be able to operate with a single community standard.

As for the risk of non-compliance, the regulation establishes that the consequences may include supervisory sanctions or operational restrictions. Specific amounts of fines are not specified in the published text, but operational restrictions may have a direct economic impact on the branch's activity.

Who does it affect?

• Branches in the EU of banks headquartered in countries not belonging to the European Union (third countries): these are the entities directly obligated by the regulation.
• Directors and compliance officers of such branches, who must ensure the adaptation of reporting systems.
• Technology and systems teams responsible for tools for extracting and sending regulatory data.
• CFOs and financial directors of affected branches, who must budget the cost of adaptation.
• National banking supervisors of the Member States, who will see their discretion reduced in requiring their own formats.
• Advisors and consultants in banking regulatory compliance who serve these entities.

Practical example

Imagine a branch in Madrid of a bank headquartered in New York. Until now, this branch sent its supervisory reports to the Bank of Spain in the format and with the frequency that this national supervisor required, which could differ from the format that the same entity used for its branch in Frankfurt before the BaFin.

With Regulation 2026/1757, both branches must use the same harmonized templates and the same technical formats, regardless of which national supervisor oversees them. This requires the bank to review its reporting systems in each EU country where it operates and unify them under the new community standard.

For the Madrid branch, the process involves: auditing current reporting formats, identifying differences with the new regulation templates, adapting technological data extraction systems and validating the new submission flow with the Bank of Spain before the effective application date.

What should companies do now?

1. Identify if the entity is affected: Verify if the branch belongs to a bank headquartered outside the EU and operates in one or more Member States. If so, the regulation applies directly.
2. Audit current supervisory reporting systems: Map which templates and formats are currently used to communicate information to national supervisors and compare them with the new standards of Regulation 2026/1757.
3. Estimate the cost of technological adaptation: Evaluate whether current systems allow generating the new formats or if an update or replacement of tools is required. Budget the adaptation project.
4. Designate a compliance project manager: Assign an internal contact (compliance, technology or finance) to coordinate the adaptation and contact with the national supervisor.
5. Contact the national supervisor to clarify the transition timeline: Given that the entry into force date is not specified in the published text, it is key to obtain confirmation from the supervisor on the effective application deadlines.
6. Document the adaptation process: Keep a record of the compliance process to be able to prove it to the supervisor in case of inspection or request.

Official source

Consult complete regulation in official source

Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://eur-lex.europa.eu/./legal-content/AUTO/?uri=OJ:L_202601757