Council of the European Union and European Parliament 31 May 2024, Directive (EU) 2024/1619 of the European Parliament and of the Council of 31 May 2024 amending Directive 2013/36/EU as regards supervisory powers, sanctions, third-country branches, and environmental, social and governance risks (Text with EEA relevance)

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Directive (EU) 2024/1619 of the European Parliament and of the Council of 31 May 2024 amends Directive 2013/36/EU to strengthen the Union banking supervisory framework by introducing harmonised requirements in four principal areas: supervisory independence and conflict-of-interest prevention for competent authorities; a common prudential framework for third-country branches, including classification, authorisation, capital endowment, liquidity, and governance requirements; enhanced supervisory powers over material operations (acquisitions of material holdings, asset and liability transfers, mergers and divisions); and mandatory integration of environmental, social and governance (ESG) risks into institutions' governance, risk management, and supervisory review processes. Key provisions establish cooling-off periods and declarations of interest for supervisory staff, require third-country undertakings to establish an authorised branch before providing core banking services in the Union (with specified exemptions), and oblige institutions to develop quantifiable plans addressing ESG risks over short, medium, and long-term horizons. Member States are required to transpose the Directive by 10 January 2026, with application of the third-country branch and branch establishment requirements deferred to 11 January 2027.AI