CRD6: New EU rules for non-EU entities conducting cross-border banking business in the EU (April 2024)
Client Briefings
Introduction
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The new EU Capital Requirements Directive (CRD6) will require non-EU entities intending to provide ‘core banking services’ in an EU Member State to establish an authorised local branch in that Member State unless one of the limited exemptions applies. A new Article 21c of the Capital Requirements Directive (CRD) will restrict the cross-border provision of loans or credit and guarantees or commitments by non-EU banks and the taking of deposits or other borrowing in the EU by any non-EU entity.
The new rules are expected to take effect by end-2026.
