By Charlotte GAUCHON
23 March 2025
Leasing has become an essential financing tool in the European single market. Its cross-border dimension raises complex legal issues. This article analyses the regulatory framework for financial institutions operating across national borders. Freedom to provide services in the European Banking Directive The Second Banking Directive (89/646/EC of 15 December 1989) is the founding text for cross-border financial services. It harmonises the conditions of access to the business of credit institutions, but not the conditions under which they operate. It establishes the principle of the «European passport», enabling financial institutions authorised in one Member State to operate throughout the EU. This freedom is exercised either by setting up a branch or by providing services directly. Leasing companies benefit from this framework, provided that they qualify as credit institutions under the criteria of the directive. Commission interpretative communication of 1997 The...
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