FIN. TeamThe International Regulatory Strategy Group (IRSG) has published a narrative on the European Commission’s proposal for new rules for third country providers of banking services as part of the EU Capital Requirements Directive (CRD).
Currently, the CRD requires third country providers to be authorised if they are taking deposits and lending to the public. The new proposals would prevent a much wider range of cross-border banking services from a third country firm into the EU where this is not done either via a third country branch in the EU or via reverse solicitation.
The ISRG is not happy that the current proposals would put in place new barriers for consumers and businesses and would make the EU an outlier as other major jurisdictions allow cross-border business to some extent without a locally authorised branch.
