8. Assessment of the booking arrangements of the TCB

Competent authorities should satisfy themselves that the TCB has put in place adequate processes to maintain a registry book enabling the TCB to record all its assets and liabilities booked or originated, and off-balance sheet items.

Competent authorities should assess the adequacy and completeness of the policies, processes and procedures established to maintain a registry book and that they are suitable for ensuring compliance with the requirements provided in the EBA RTS on booking arrangements³¹ .

Competent authorities should satisfy themselves that such policy outlines the booking and hedging strategies for the different types of transactions, as well as the associated procedures, controls and governance framework.

Competent authorities should verify that the booking arrangements set out in the policy are aligned to the TCB business strategy. The policy should clearly lay out anticipated intragroup operations and the management of risks arising from these operations.

31 Available at Final Report on draft Regulatory Technical Standards on booking arrangements.pdf

In relation to back-to-back arrangements, competent authorities should verify that the policy does not envisage to systematically or substantially rely on back-to-back hedging strategies or intragroup risk transfers.

Competent authorities should verify that the policy has been approved by the governing body of the applicant head undertaking.