As of January 11, 2027, European Union (EU) Member States are prohibiting the provision of cross-border banking services (including lending) into the EU by certain non-EU institutions (in broad terms, banks and large broker-dealers) other than from a locally licensed branch. The prohibition appears as the new Article 21c of the EU Capital Requirements Directive (this legislation is known as “CRD VI”). Existing EU law is silent on the regulation of cross-border banking services. Whether (and with what restrictions) non-EU institutions can provide services to clients in the EU is therefore dependent on the national law of the local client’s Member State. CRD VI will harmonize this position by requiring all Member States to impose a licensing requirement on certain cross-border services.
Our panelists provided a broad overview of the incoming licensing requirements, as well as implications and interpretations causing concerns/issues for banks in the US loan markets.
CLE credit information:
- 1 NYS CLE credit offered
- Does not offer CLE credits for replay
Speakers:
- Karen Contoudis Buzard, Partner, A&O Shearman
- Adam W. Harwood, Associate, A&O Shearman
- Lena Kiely, Partner, A&O Shearman
- Bob Penn, Partner, A&O Shearman
Moderator:
- Elizabeth Yazgi, Assistant General Counsel, LSTA
