#BGBl. 2026 I Nr. 81Act on the Implementation of Directive (EU) 2024/1619 Amending Directive 2013/36/EU with Regard to Supervisory Powers, Sanctions, Third-Country Branches and ESG Risks and on the Bureaucratic Relief for Credit Institutions
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This German law transposes EU Directive 2024/1619 into national law. It amends the Capital Requirements Directive (CRD IV - 2013/36/EU) by strengthening supervisory powers of competent authorities, updating rules on administrative sanctions, introducing enhanced requirements for third-country bank branches operating in the EU, and integrating Environmental, Social and Governance (ESG) risks into the supervisory review and evaluation process (SREP). The law also contains specific measures to reduce bureaucratic burdens on credit institutions by simplifying certain reporting and disclosure obligations. It was published in the Federal Law Gazette (BGBl. 2026 I Nr. 81) on 30 March 2026 with an entry-into-force date of 25 March 2026.
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Key Changes
- Integration of ESG risks into the supervisory review and evaluation process (SREP) for credit institutions
- Strengthening of supervisory powers and harmonisation of sanctioning powers across EU member states
- Introduction of enhanced authorisation and prudential requirements for branches of third-country banks operating in the EU
+ 3 more changes with Pro
Obligations
What this law requires
Credit institutions must integrate Environmental, Social and Governance (ESG) risks into their supervisory review and evaluation process (SREP)
Competent authorities must exercise expanded supervisory powers as amended by Directive 2024/1619
Third-country bank branches operating in the EU must comply with enhanced requirements established by the amended directive
Administrative sanctions regimes for credit institutions must be updated in accordance with the new provisions of Directive 2024/1619
Credit institutions must comply with simplified reporting and disclosure obligations as specified in the bureaucratic relief measures