EU banking directive will force non-EU banks to set up Danish branches or lose customers

Under the Capital Requirements Directive, non-EU banks that take deposits, grant loans or provide credit guarantees must have an authorised branch in the EU to serve customers. Denmark will apply the rule from January 2027, affecting residents who hold accounts with banks outside the EU. Those banks will need to set up a Danish branch or work with a local subsidiary, unless the relationship falls under the "reverse solicitation" exemption or was contracted before the cutoff date.

As a result, customers may receive letters requesting a Danish address, and some banks may choose to close the accounts altogether. Alternatives include using banks that operate in both the home country and Denmark or digital banks such as Wise or Revolut, which offer multi-currency accounts but lack full-service branches. The impact on expatriates and pensioners remains uncertain, prompting calls for more feedback from affected individuals.