EN 
 
 
OPINION OF THE EUROPEAN CENTRAL BANK 
of 15 June 2007 
at the request of the Greek Ministry of Economy and Finance  
on certain provisions of a draft law on the taking up and pursuit of the business of credit 
institutions, the sufficiency of own funds of credit institutions, undertakings providing 
investment services and other provisions  
(CON/2007/15) 
 
Introduction and legal basis  
On 25 April 2007 the European Central Bank (ECB) received a request from the Greek Ministry of 
Economy and Finance for an opinion on certain provis ions of a draft law on the taking up and pursuit of 
the business of credit institutions, the sufficiency of own funds of credit institutions, undertakings 
providing investment services and other provi sions (hereinafter the ‘draft law’). 
The ECB’s competence to deliver an  opinion is based on Article 105(4) of the Treaty establishing the 
European Community and the third, fifth and sixth i ndents of Article 2(1) of Council Decision 98/415/EC 
of 29 June 1998 on the consultation of the European  Central Bank by national authorities regarding draft 
legislative provisions1, as the draft law relates to a national cen tral bank, payment and settlement systems 
and rules applicable to financial institutions insofar as they materially influence the stability of financial 
institutions and markets. In accordance with the first sen tence of Article 17.5 of the Rules of Procedure of 
the European Central Bank, the Governing Council has adopted this opinion. 
 1.  Purpose of the draft law  
The draft law implements Directive 2006/48/EC of the European Parliament and of the Council of 
14 June 2006 relating to the ta king up and pursuit of the business of credit institutions (recast)
2 and 
Directive 2006/49/EC of the European Parliament and of the Council of 14 June 2006 on the capital 
adequacy of investment firms and credit institutions (recast)3. The draft law complements the soon to be 
adopted amendments to the Bank of Greece’s Statute, with the aim of providing for acceptance of credit 
claims as eligible collateral, in line with the Euro system’s single list of eligible collateral for credit 
                                                 
1  OJ L 189, 3.7.1998, p. 42.  
2  OJ L 177, 30.6.2006, p. 1. 
3  OJ L 177, 30.6.2006, p. 201 . 
 
2 operations4 (hereinafter the ‘single list’). The draft pr ovisions on which the ECB was consulted concern: 
(i) supervision, in particular its costs and sanctions ; (ii) the provision of collateral to the Bank of Greece 
in the context of the exercise of monetary policy, especially as a consequence of the introduction of the 
single list; and (iii) the liability regime. 
 2. Costs of supervision 
Article 86 of the draft law provides that the costs of auditing should be borne by the supervised credit and 
financial institutions. It empowers the Bank of Greece to determine the nature and extent of the costs, as 
well as criteria on the basis of which such costs ma y be differentiated by category of supervised 
institutions or audited activities. The ECB welcomes th e fact that financial supervision will be financed 
by supervised institutions, since this would furt her enhance the Bank of Greece's financial soundness. 
 3. Provision of collateral to the Bank of Greece 3.1 The draft law makes clear that the Bank of Greec e accepts credit claims as collateral in order to 
secure its claims arising out of monetary policy operations and the provision of intraday credit. Such credit claims will fulfil the Eurosystem’s  eligibility criteria for collateral following the 
introduction of the single list. 
3.2 In connection with the above, the draft law stipulates that announcement to a debtor of the 
establishment of collateral (including a pledge) prov ided by a credit institution in favour of the 
Bank of Greece or another central bank of the Eurosystem, in the context of monetary policy operations or the provision of intraday liquidity on its claims from a bank loan or a credit of any 
kind granted to the debtor, takes priority over  any subsequent announcement or registration of 
collateral on the same, already collateralised claim. Th is is to ensure that collateral consisting of 
credit claims in favour of the Eurosystem that have  not been registered in the public books pursuant 
to Law 2844/2000 still take priority over subse quent collateral on the same claims registered 
therein, if the debtor has been notified of the provi sion of collateral to the Eurosystem prior to such 
registration. Hence, with specific regard to co llateral consisting of credit claims established in 
favour of the Eurosystem, priority is not determined on the basis of the time of registration in the public books, but a more flexible approach h as been adopted, in line with the Eurosystem 
procedures. The ECB therefore welcomes these provisions of the draft law. 
3.3 Regarding Article 89, which provides for additi onal collateral coverage w ithin two working days 
for cases where the claims are not covered by the pl edge, it is noted that such collateral coverage 
should be fulfilled at all times. The debtor should be obliged to supplement the additional collateral 
immediately so that at the end of the business day sufficient collateral coverage is restored. 
Therefore, it is suggested to am end the wording of this article. 
                                                 
4  See ECB Opinion CON/2007/13 of 8 May 2007 at the request of  the Bank of Greece on am endments to its Statute. 
 
3 3.4 Regarding Article 90 on the amen dment of Law 2789/2000, the legislator is invited to clarify the 
wording of Article 90(2), in order to extend to the ECB or another central bank of the Eurosystem the possibility of an off-the-stock-market sale of collateral. 
 4. Publication of sanctions  Article 69(4) of the draft law provides for publicati on of the Bank of Greece’s decisions on the imposition 
of sanctions, in order to ensure transparency in the market.  The ECB welcomes the reference to the 
stability of the financial markets in this paragra ph: the Bank of Greece can only publish a decision on the 
imposition of sanctions if it considers that such publi cation is not related to th e supervisory requirements 
set out in the draft law and is not likely to create a ri sk of serious disruption of the financial markets or 
disproportionate loss to interested parties. Such publication is accompanied by sufficient safeguards. 
 5.  Liability regime The ECB also welcomes Article 69(5) of the draft law,  which adequately reflects the Core Principles for 
Effective Banking Supervision adopted by  the Basel Committee on Banking Supervision
5 by requiring 
protection from personal and institutional liability for s upervisory actions taken by bodies and staff of the 
Bank of Greece in good faith in the cour se of performing their supervisory duties6. 
 This opinion will be published on the ECB’s website.    Done at Frankfurt am Main, 15 June 2007. 
 
[signed] 
 
The President of the ECB 
Jean-Claude TRICHET 
                                                 
5 Available on the Bank for International Settlements’s  website at www.bis.org. 
6 See also paragraph 3.4 of ECB Opinion CON/2006/38 of 25 Ju ly 2006 at the request of the Bank of Greece on a draft 
provision on the Bank of Greece’s powers in the field of consumer protection.