(1) Where the Bank is supervising a national parent in accordance with Regulation 219, it may conclude an agreement with the supervisory authority of another Member State where another related ultimate parent undertaking at national level has its head office, with a view to carrying out group supervision at the level of a subgroup covering the State and that other Member State.

(2) In such a case, the Bank, in conjunction with the supervisory authority referred to in paragraph (1), shall explain their agreement to the group supervisor and the ultimate EU parent.

(3) Where an agreement has been concluded as mentioned in paragraph (1), group supervision shall not be carried out at the level of any ultimate parent undertaking at a national level located in Member States other than the Member State where the subgroup referred to in that paragraph is located.

(4) Regulation 219(4) to (10) shall apply to group supervision at the level of the subgroup referred to in paragraph (1) subject to any necessary modifications.