International
Asia Pacific
EMEA
North America
Latin America
The new EU Capital Requirements Directive (CRD6) establishes a new harmonized and more restrictive framework for cross-border banking and lending into the EU. The new third country branch (TCB) rules will prohibit the provision of certain banking services into the EU on a cross-border basis by firms outside the EU, unless done in accordance with limited exemptions.
Banks and investment firms meeting the scope requirements, who today may rely on national regimes or exemptions in order lawfully to access clients in certain Member States, will in future be required to open a branch and seek authorization in each Member State where they take deposits, engage in lending, and/or provide guarantees/commitments, unless they can rely on one of the limited pan-EU exemptions established under CRD6. Once authorized, a harmonized set of minimum compliance requirements will apply to TCBs. TCBs will have no passporting rights of their own, and therefore firms seeking to operate in multiple Member States may require multiple TCBs to be established or consider subsidiarization in order to benefit from the passport.
These new requirements are a step change in policy and will restrict the provision of agile cross-border financial services into the EU, with the potential to significantly impact the commercial lending market in particular.
Click here to download the briefing.
Copyright © 2024 Baker & McKenzie. All rights reserved. Ownership: This documentation and content (Content) is a proprietary resource owned exclusively by Baker McKenzie (meaning Baker & McKenzie International and its member firms). The Content is protected under international copyright conventions. Use of this Content does not of itself create a contractual relationship, nor any attorney/client relationship, between Baker McKenzie and any person. Non-reliance and exclusion: All Content is for informational purposes only and may not reflect the most current legal and regulatory developments. All summaries of the laws, regulations and practice are subject to change. The Content is not offered as legal or professional advice for any specific matter. It is not intended to be a substitute for reference to (and compliance with) the detailed provisions of applicable laws, rules, regulations or forms. Legal advice should always be sought before taking any action or refraining from taking any action based on any Content. Baker McKenzie and the editors and the contributing authors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The Content may contain links to external websites and external websites may link to the Content. Baker McKenzie is not responsible for the content or operation of any such external sites and disclaims all liability, howsoever occurring, in respect of the content or operation of any such external websites. Attorney Advertising: This Content may qualify as “Attorney Advertising” requiring notice in some jurisdictions. To the extent that this Content may qualify as Attorney Advertising, PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. Reproduction: Reproduction of reasonable portions of the Content is permitted provided that (i) such reproductions are made available free of charge and for non-commercial purposes, (ii) such reproductions are properly attributed to Baker McKenzie, (iii) the portion of the Content being reproduced is not altered or made available in a manner that modifies the Content or presents the Content being reproduced in a false light and (iv) notice is made to the disclaimers included on the Content. The permission to re-copy does not allow for incorporation of any substantial portion of the Content in any work or publication, whether in hard copy, electronic or any other form or for commercial purposes.
Are you sure want to delete comment ?
Scan this QR Code to share this content
