Preparing for the new EU lending rules: What CRD6 means for cross-border banking and lending

New European Union (EU) banking rules under the sixth Capital Requirements Directive (CRD6) are set to harmonize how non-EU banks and certain large investment firms lend to borrowers across the EU.

While there have been different interpretations of the scope of license requirements for cross border lending in the different EU member states, CRD6 now clarifies that as of January 11, 2027, cross-border lending into the EU requires the establishment of an EU branch or subsidiary or availability of appropriate exemptions.

For financial institutions with EU-facing business, CRD6 may affect market access, operating models, product strategy, booking arrangements, documentation, and the cost of doing business across the EU. As EU member state implementation continues to develop, financial services companies are encouraged to begin assessing their exposure and identifying a practical path forward.

If your institution lends to EU-based borrowers, it may be time to evaluate your position. We can help you identify where CRD6 may affect your business and develop a practical roadmap for continued EU market access.

With the implementation date approaching, the decision that lenders make now can help financial services organizations preserve market access, reduce disruption, and establish a compliant EU operating model. Early planning can also help lenders take advantage of grandfathering where available and avoid last-minute structural or documentation challenges.

Our lawyers across EU member states and global financial centers combine integrated regulatory, finance, corporate, and supervisory experience to help clients navigate CRD6.

DLA Piper’s CRD6 cross-border attorneys help non-EU lenders comply with the new rules when lending into the EU. Our support includes:

• Perimeter assessment: Analysis of existing and planned cross-border lending activities to determine whether they fall within the scope of the rules and if exemptions apply.
• Transaction execution and remediation: Advice on the impact of CRD6 on existing and future lending transactions, including the impact of extensions and implementation strategies to support new compliant cross-border lending into the EU.
• Market access strategy: Determination whether a lender needs a local EU subsidiary or a branch to carry out their lending activities.
• Establishment of EU subsidiary/branch: Assistance includes setting up the EU entity and obtaining appropriate authorizations and passports, reviewing client-facing documentation, and engaging with the appropriate national supervisory authority.
• Regulatory developments tracking: Lenders will receive tailored regulatory updates to help keep their internal compliance programs current.