European Union: Finance and Banking

EU banks now operate with stronger capital and liquidity positions following post-crisis reforms, but attention is shifting to how the framework functions in practice. Fragmentation within the single market, regulatory complexity, and the implementation of Basel III standards are emerging as central policy concerns. France, Italy and Spain are exploring ideas to facilitate cross-border banking activity while the European Commission reviews the sector's competitiveness.

The Malta Financial Services Authority has issued a DEAR CEO letter outlining minimum expectations for authorized persons' preparedness for Payment Services Directive 3. This guidance document provides essential compliance information and offers legal support resources for financial institutions navigating PSD3 requirements.

The Dutch Senate has approved legislation implementing CRD VI, fundamentally changing how non-EU banks can provide loans and banking services to corporate borrowers in the Netherlands and across the EU.

The mood across the conference was noticeably positive. While market participants continue to navigate geopolitical uncertainty, evolving regulation and a higher interest rate environment...

The European Court of Justice's Advocate General has delivered a significant opinion on whether Luxembourg properly implemented the EU Anti-Tax Avoidance Directive when it classified securitisation entities as exempt financial undertakings. The case examines whether Luxembourg's approach to exclude these entities from interest limitation rules aligns with EU law and the principle of equal treatment, with potential implications for how member states interpret ATAD's financial undertaking exemptions.

A proposed bill of law seeks to modernize Luxembourg's securitization framework by expanding financing options beyond traditional instruments, introducing cross-compartment investment mechanisms, and extending active portfolio management capabilities to include equity positions. The reforms aim to enhance legal certainty around asset ring-fencing in insolvency scenarios while aligning the regime with contemporary market practices, particularly for Islamic finance structures and multi-compartment vehicles.

Partners Sarah Thompson and Rob Cain examine Article 21c of CRD IV as amended by CRD VI, exploring how new restrictions on third-country institutions providing core banking services into the EU will reshape cross-border operations. The discussion addresses implementation uncertainties, grandfathering deadlines, and strategic considerations for financial institutions navigating the January 2027 compliance horizon.

The EU's Capital Requirements Directive VI introduces Article 21c, fundamentally reshaping cross-border lending by non-EU banks to EU borrowers. With Ireland's grandfathering deadline of 11 July 2026 rapidly approaching...

The most common category of Irish Fund subject to the Alternative Investment Fund Managers Directive (“AIFMD”), and the fund most used by private capital sponsors, is the Qualifying Investor Alternative Investment Fund (“QIAIF”). A QIAIF is subject to the Central Bank of Ireland’s (“CBI”) AIF Rulebook.

Ireland's Department of Finance has released its third National Risk Assessment on Money Laundering, Terrorist Financing and Proliferation Financing, identifying very significant risks in retail banking, digital banking, crypto-assets, and payment institutions. The assessment is accompanied by a comprehensive 30-Point Action Plan designed to strengthen Ireland's financial crime response framework over the next 18 months through enhanced regulatory oversight, beneficial ownership transparency, and sector-spe

CRD VI introduces new EU-wide branch requirements for non-EU lenders providing banking services to European borrowers, with a critical July 2026 deadline approaching.

Recent developments in the aviation financing market are driving a noticeable shift in how transactions are being structured.