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Banking branches

CRD VI and the new framework for third-country bank branches

CRD VI reshapes how non-EU banks provide core banking services in the EU, with new branch and substance requirements.

Reading time
8 min
Last reviewed
2026-07-08

In short

Under CRD VI, third-country (non-EU) banks generally need an authorised branch to provide core banking services in a Member State, with enhanced governance, booking-model and local-substance requirements. The days of serving EU clients purely cross-border are narrowing.

What CRD VI changes

It generally requires an authorised branch for core banking services, tightening cross-border provision by third-country banks.

New expectations

Local governance, defined booking models and genuine local substance become central.

Branch vs subsidiary

Assess the model early, because scale and activity may point to a subsidiary rather than a branch.

Related regime guide: Banking branches

Official regulatory sources

Verified external references. Always confirm against the current official text.

RenIQ provides regulatory strategy and programme delivery. It is not a law firm and this content is illustrative guidance, not legal advice. Regime details are summaries that may change, so always verify against current rules and official sources, and take formal advice before acting.

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