Lending from outside the EU: when does supervision apply?
The implementation of the Sixth Capital Requirements Directive (CRD VI) introduces significant changes for non-EU parties wishing to provide credit to businesses within the European Union. Under certain conditions, a licensing or supervisory requirement may arise, potentially having far-reaching implications for banks, direct lenders, private equity firms and other international financiers.
In this document, we outline when the so-called third-country branch requirement (TCB requirement) applies, which exceptions are available—including reverse solicitation and intra-group financing—and what the transitional regime means for existing financing documentation. We also discuss the practical impact of the new rules and the key considerations in the run-up to their implementation.
Curious about what these developments mean for your organisation?
View the full document below to learn which situations fall within the scope of the new rules, which exceptions may apply, and what steps you can already take to ensure you are well prepared.
