CRD VI: What lenders need to know when lending into the European Union

The European Union’s (the “EU”) Directive 2024/1619/EU (“CRD VI”) introduces reforms which deal directly with lending into the EU by third country credit institutions. In particular, the CRD VI third-country provisions seek to harmonise both the access by and supervisory framework for non-EU credit institutions who provide core banking services in Europe, including lending (“Article 21c”).

While some EU Member States already prohibit third-country lenders from lending to corporate borrowers without a local licence or branch (i.e. pre CRD VI), cross-border lending to Irish non-consumer borrowers has generally been considered an unregulated activity1.

The note below examines the key considerations for cross border lenders lending into Ireland post CRD VI.