- within Law Department Performance, Antitrust/Competition Law, Litigation and Mediation & Arbitration topic(s)
Introduction
As Article 21c of CRD VI ushers in a new era for third‑country access to the EU banking market, firms need clarity, strategy and the right expertise beside them.
Undoubtedly, the requirement for EU branches for core banking services will reshape operating models from 11 January 2027, but with carefully calibrated use of available exemptions, evolving national transpositions and a policy landscape still settling into place, there is room to navigate confidently.
Arthur Cox is working with clients to cut through the complexity, anticipate what matters, and chart a smooth, assured path through Article 21c, turning regulatory change into practical, actionable solutions.
Background
Directive (EU) 2024/1619 of the European Parliament and of the Council of 31 May 2024 (CRD VI) amending Directive 2013/36/EU (CRD IV) entered into force in July 2024. CRD VI, together with Regulation (EU) 2024/1623 (CRR III) form the "Banking Package" and aim to implement the final elements of Basel III. At a high level, CRD VI makes amendments to CRD IV with the intention of promoting harmonisation across Member States and deepening the internal banking market.
One feature of the Banking Package that has been of particular interest to market participants is Article 21c of CRD VI, which introduces a general prohibition on the direct provision of core banking services - deposit-taking, lending, and issuing guarantees or commitments - by third-country undertakings (TCUs) into the EU (the General Prohibition).
The General Prohibition was born out of the recognition that cross border lending and a fragmented regulatory landscape give rise to risks to financial stability and market integrity.
From 11 January 2027, TCUs will be required to establish a licensed branch in each Member State where they wish to provide core banking services or operate through an authorised EU entity when providing core banking services. TCUs comprise non-EU banks and non-EU significant investment firms (which deal on their own account and have assets exceeding €30 billion) which are engaged in the provision of core banking services into the EU.
The requirements of Article 21c represent a significant change to how TCUs access the European market, particularly for jurisdictions like Ireland that have historically permitted cross border lending without requiring a local, regulated presence.
Although the rationale behind the General Prohibition is well understood, its implementation will occur in an economic and political landscape that has evolved considerably since its inception. While the pursuit of regulatory harmonisation and financial stability continues to underpin European policy, there is now heightened emphasis on fostering growth and competitiveness. As a result, the impact of these new requirements on cross-border financial services activity will be closely scrutinised by market participants.
TRANSPOSING MEASURES
Member States were required to publish national transposing measures in respect of CRD VI by 10 January 2026. Most Member States missed that deadline, Ireland included. There is currently a degree of uncertainty as regards when the domestic transposing measures will be published, and, when they are made available, whether they will be aligned with the European level text or aim to introduce clarifications and/or new requirements. We, along with all market participants, will be watching developments in this regard closely.
This briefing will look at Article 21c and the General Prohibition in more detail, including the branch authorisation requirements, exemptions and carve outs, and specific considerations for sectors such as Financial Regulation, Financial Services Compliance and Regulation, Asset Management and Investment Funds, Fund Finance, Debt Finance, Aviation, Debt Capital Markets and Insurance. We hope this will provide a helpful introductory guide as the Irish financial services sector works to interpret the provisions of the new CRD VI regime and the regulatory compliance challenges it presents.
To view the full pdf, click here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
