1. Member States shall classify third-country branches as class 1 where those branches meet any of the following conditions:
(a) the total value of the assets booked or originated by the third-country branch in the Member State is equal to or greater than EUR 5 billion, as reported for the immediately preceding annual reporting period in accordance with Section II, Sub-Section 4;
(b) the third-country branch's authorised activities include taking deposits or other repayable funds from retail customers, provided that the amount of such deposits and other repayable funds is equal to or greater than 5 % of the total liabilities of the third-country branch or the amount of such deposits and other repayable funds exceeds EUR 50 million;
(c) the third-country branch is not a qualifying third-country branch within the meaning of Article 48b.
2. Member States shall classify third-country branches that do not meet any of the conditions set out in paragraph 1 as class 2.
…