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Clifford Chance

Clifford Chance


New EU third-country regime for banking business

4 November 2021

The European Commission has proposed new harmonised rules for non-EU firms carrying on banking business in the EU, including deposit-taking, lending, payments, foreign exchange and securities and derivatives business. The new rules would restrict the ability of non-EU firms to carry on cross-border banking business into the EU except on a reverse solicitation basis. They would also harmonise the way in which Member States regulate non-EU firms carrying on banking business through EU branches.

If adopted, the new rules would have a significant impact on the ability of many non-EU banks and non-bank firms to continue to deal with EU customers or counterparties on a cross-border basis in reliance on existing Member State regimes. The new rules would also significantly alter the regulatory regime for many non-EU firms currently operating through EU branches.

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