Member States must require third‑country branches to maintain at all times a minimum capital endowment, without prejudice to other national capital requirements: class 1 — 2.5% of the branch’s average liabilities over the three immediately preceding annual reporting periods or, for newly authorised branches, of the branch’s liabilities at authorisation, subject to a minimum of EUR 10 million; class 2 — 0.5% on the same basis, subject to a minimum of EUR 5 million.

The endowment must be held in the form of (a) cash or cash‑assimilated instruments as defined in Article 4(1)(60) of Regulation (EU) No 575/2013; (b) debt securities issued by Member State central governments or central banks; or (c) any other instrument available for unrestricted and immediate use to cover risks or losses as soon as they occur. Member States shall require deposit of these instruments in an escrow account in the Member State where the branch is authorised, held with a credit institution outside the head undertaking’s group or, where permitted by national law, with the Member State central bank; escrowed instruments must be available for use for the purposes of Article 96 of Directive 2014/59/EU in resolution and for winding‑up under national law. The EBA shall issue guidelines by 10 July 2026 to specify point (c).