For many asset-based lenders (“ABLs”) that do not take deposits, CRD VI’s branch requirements will not apply directly — but reliance on the non-bank carve-out requires careful, structure-specific analysis, and does not eliminate all regulatory risk.

General

CRD VI (Directive 2024/1619) introduces an EU-wide framework governing how non-EU undertakings may provide core banking services to EU borrowers. Article 21c requires third-country undertakings providing core banking services (including lending) within a Member State to establish a branch authorised under the Directive (a “third-country branch”). CRD VI applies primarily to “credit institutions” as defined under the Capital Requirements Regulation (“CRR”). The regime sits alongside existing national licensing frameworks. It should also be noted that CRD VI introduces other obligations (including ESG risk management and governance requirements) beyond the scope of this note.