New EU banking rules are reshaping competition across the continent. By encouraging consolidation among domestic lenders, CRD6 may accelerate the rise of larger, multi-jurisdictional European banking champions.
From the 2008 financial crisis until early 2024, the value of cross-border banking mergers in the EU remained relatively stagnant, with European banks maintaining a predominantly domestic focus. In fact, according to a report by the European Central Bank, the value of M&A transactions in the EU fell by approximately 66% between the pre-crisis decade and 2020. This long-term trend stands in stark contrast to the sudden increase in the value of EU bank merger deals between 2024 and 2025, during which the total value of cross-border banking deals rose from €3.4 billion to €17 billion. The latter figure represents the highest level since the €19 billion recorded in 2008, the year of the financial crisis. This time, however, the reason behind the sharp increase in cross-border EU mergers is more subtle, with new EU legislation playing a significant role.
A legislative explanation for the upward trend in mergers reveals how recent regulatory changes are pushing the EU toward a stronger eurocentric banking landscape. The key legislative development is the EU’s Capital Requirements Directive VI (CRD6), which entered into force on July 9, 2024, a
