(1) The prudential supervision of institutions which are authorised by the Bank, including the activities they carry out in accordance with Articles 33 and 34 of the Capital Requirements Directive, shall be the responsibility of the Bank.

(2) Where the prudential supervision of institutions, including the supervision of activities such institutions carry out in accordance with Articles 33 and 34 of the Capital Requirements Directive, is the responsibility of the competent authorities of the home Member State, nothing in these Regulations shall prevent the Bank from exercising powers or performing functions conferred on it in its capacity as a host Member State authority.

(3) Nothing in paragraph (1) shall prevent -

(a) the competent authorities of other Member States from exercising powers conferred on host Member State competent authorities by the Capital Requirements Directive, in respect of branches of institutions authorised by the Bank,