On 22 August 2025, the German Ministry of Finance (Bundesministerium der Finanzen – BMF) published its draft bill for the implementation of Directive 2024/1619 (CRD VI) into German national law. The bill is entitled CRD VI Implementing and Bureaucracy Reduction Act (Bankenrichtlinienumsetzungs- und Bürokratieentlastungsgesetz – BRUBEG).
With its draft bill, the BMF intends to implement the European directive on a “one-to-one” basis (no “goldplating”) and to reduce excessive bureaucracy in the German banking sector. In line with CRD VI, the BRUBEG addresses aspects such as the outstanding elements of the Basel III reforms and introduces amendments in connection with supervisory powers, sanctions and environmental, social and governance (ESG) risks.
A key aspect of CRD VI is the harmonisation of the supervisory framework for branches of third-country banks (TCBs) (see our related briefing note). The BRUBEG will therefore introduce new rules for cross-border core banking business by non-EEA entities in the German Banking Act (Kreditwesengesetz – KWG). Two country-specific aspects should be noted for Germany:
- Individual Exemptions
Under CRD VI, non-EEA entities that provide core banking services in a Member State must establish a TCB in that Member State (and must apply for authorization) unless the non-EEA entity can rely on one of the exemptions in Article 21c CRD VI.
So far, however, the German Federal Financial Supervisory Authority (BaFin) may grant a non-EEA institution that intends to provide regulated services in Germany on a cross-border basis (i.e. without a branch) an exemption (Freistellung) from the German licensing requirements in the individual case on application pursuant to Section 2(5) KWG. The German regulator has granted such individual exemptions to, in particular, the major US, Canadian and Swiss banks.
The BRUBEG does not entirely abolish such individual exemptions for cross-border business. However, pursuant to draft Section 2(5) Sentence 1 KWG, individual exemptions will no longer be possible to the extent conflicting with the CRD VI provisions on core banking services by non-EEA entities. According to draft Section 2(5) Sentence 2 KWG, BaFin must revoke any individual exemptions it has already granted if this is required by CRD VI.
- Reverse Solicitation
The BRUBEG does not provide for an explicit implementation of the reverse solicitation exemption for cross-border services requested by an EEA client at its own exclusive initiative set out in point (a) of Article 21c(2) CRD VI. Reverse solicitation scenarios are only referred to in certain specific provisions for German TCBs.
However, based on the so called “freedom to provide requested services”, BaFin has generally recognised an exemption from the licensing requirements for cross-border services of a foreign provider requested at the own exclusive initiative of a German client. Furthermore, in its explanatory statement, the BMF refers to the reverse solicitation exemption under CRD VI which can be construed as an implicit confirmation of this exemption and the longstanding administrative practice of BaFin. Therefore, the reverse solicitation exemption should continue to apply.