As the 2008 financial crisis highlighted, through institutions like some of the Icelandic Banks or Lehman Brothers, groups can be a source of both risk and support to UK branches and subsidiaries. Therefore, access to proportionate and timely information on the risks posed by a firm’s group is critical to the PRA’s approach to supervising international banks. Our expectations are set out in two parts. Firstly, a clear baseline of information we want on all international banks. This concerns: the nature of the firm and group’s business model; the resilience of the firm and its parent from both an operational and financial perspective; material risks to the firm’s strategy; and resolution planning. Then, on top of that, a proportionate and tailored set of data that reflects a firm’s business model, its scale and potential impact on UK financial stability. Proportionality is key here. We need more detail on a firm’s group where it is larger, more systemic and where its business model is highly integrated globally e.g. trading and custody. This is because the more highly integrated UK operations are within the group, so the more readily losses or disruption can be transmitted to the UK operations. 6  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  6  For highly-integrated businesses such as the trading activity of GSIBs, we expect access to regular profitand-loss and risk data for key trading business lines.
66 former European Economic Area (EEA) passported branches have entered the Temporary Permissions Regime (TPR) and are applying for authorisation as third country branches (TCBs)2 ;  b. A small number of former EEA branches have been authorised as subsidiaries as they have material retail deposit taking activity; and c.  Many UK banks and large international groups who have subsidiaries here have established and built out their EU subsidiaries, meaning changes in their structure and the nature of their booking models. The fundamental philosophy underpinning the statement is responsible openness A good place to start is with the guiding philosophy underpinning the PRA’s approach to international supervision – responsible openness. The UK has long been a vibrant financial centre, with banks from around the world coming here to contribute to, and benefit from, the efficiencies and diversification provided by international trade. Our banking system is characterised by: a. the scale of international business undertaken here - around one fifth of global banking activity is undertaken in the UK with overseas banks playing an important part. They account for almost half of the banking assets held in the UK; b. the range and diversity of participants - approximately 150 branches and 90 subsidiaries from 50 countries and all of the Globally Systemically Important Banks (GSIBs) have entities operating in the UK; and c.  its global interconnectedness – with significant amounts of business booked cross border into and out of the UK.