European Central Bank (ECB) Banking Supervision published guidance for banks planning mergers or divisions, reflecting how the amended Capital Requirements Directive (CRD VI) introduces common supervisory standards across EU Member States. The ECB highlights that the new framework is intended to ensure transactions do not undermine prudential compliance and that its 2021 Guide on the supervisory approach to consolidation in the banking sector remains applicable. Banks are encouraged to notify the ECB via the IMAS Portal, with submissions made by the newly merged entity or, for divisions, the entity being split. Information requirements follow draft European Banking Authority standards, including the possibility of simplified submissions in certain cases, and early engagement with supervisors is strongly recommended, particularly where transactions interact with other processes such as qualifying holdings or banking licence changes. The ECB’s assessment typically covers five criteria: the reputation and soundness of the financial stakeholders, the ability of the new entity to meet prudential requirements, the feasibility and prudential soundness of the implementation plan, and money laundering or terrorist financing risks, with collaboration involving relevant anti-money laundering and other authorities. CRD VI rules are applicable from January 2026 and become enforceable once implemented into national law. For mergers within the same group, CRD VI allows supervisors to waive assessments and the ECB indicates it may apply a risk-based approach, including issuing a non-opposition confirmation within 60 working days once an application is complete, subject to any other required approvals.
European Central Bank - Banking Supervision 2026-02-11
European Central Bank Banking Supervision sets out CRD VI notification and review approach for bank mergers and divisions
The ECB Banking Supervision issued guidance on mergers and divisions, aligning with the amended CRD VI to standardize supervisory standards across EU Member States. It emphasizes prudential compliance and early supervisor engagement, especially for qualifying holdings or banking license changes. CRD VI rules, effective January 2026, allow a risk-based approach and potential waivers for intra-group mergers, with ECB non-opposition confirmations within 60 working days post-application.