Direct answer
EEA credit institutions can establish branches and passport across the EEA. Third-country (non-EU) banks increasingly need an authorised branch under the CRD VI framework to provide core banking services in a Member State, with new requirements on booking, governance and local substance.
Who this applies to
- EEA banks expanding cross-border
- Third-country banks serving EU clients
- Institutions considering branch vs subsidiary
Regulated activities
- Deposit-taking and lending through a branch
- Core banking services provided to EU clients
- Cross-border provision under passporting
Routes to market
Branch (passport)
EEA institutions passport to establish branches with home-state supervision.
Third-country branch (CRD VI)
Authorised branch for non-EU banks with local governance and booking requirements.
Subsidiary
A separately authorised EU credit institution where scale or activity requires it.
Capital and substance
- Capital endowment and booking-model requirements for third-country branches.
- Local senior management, risk and reporting substance.
- Recovery and resolution considerations.
Authorisation stages
- 1
Model choice
Assess branch vs subsidiary and CRD VI applicability.
- 2
Pre-application
Prepare governance, booking-model and capital evidence.
- 3
Submission
File with the competent authority and, where relevant, notify home state.
- 4
Establishment and launch
Stand up local operations and reporting.
Where applications commonly fail
- Underestimating CRD VI local substance and booking requirements
- Unclear branch vs subsidiary rationale
- Weak local risk and reporting capability
Frequently asked questions
CRD VI generally requires non-EU banks to establish an authorised branch to provide core banking services in a Member State, with enhanced governance, booking and substance expectations.
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.