31. 12. 85 Official Journal of the European Communities No C 356/55 
Proposal for a Council Directive on the coordination of laws, regulations and administrative 
provisions relating to the reorganization and the winding-up of credit institutions 
COM (85) 788 final 
(85/C 356/10) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 57 (2) 
thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Parlia­
ment, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas, in accordance with the objectives of the 
Treaty, the harmonious development of economic 
activities throughout the Community should be pro­
moted through the elimination of any restrictions on 
freedom of establishment and the freedom to provide 
services within the Community; 
Whereas, at the same time as those restrictions are 
eliminated, consideration should be given to the situ­
ation which might arise if a credit institution runs 
into difficulties, particularly where that institution has 
branches in other Member States; 
Whereas the existing structure of the credit sector, 
where the taking up and pursuit of business are subject 
to supervision by the. authorities in all the Member 
States of the Community, justifies the provision of 
specific measures in respect of the reorganization and 
winding up of credit institutions; 
Whereas there is a tendency in the laws and practices 
in force in the Member States to institute reorganization 
procedures, aimed at preventing credit institutions from 
becoming insolvent, as soon as financial difficulties 
become apparent, so as to maintain savers' confidence 
in the banking system; 
Whereas it would be very difficult to attempt to unify 
those laws and practices without first securing mutual 
recognition by the Member States of the achievements 
of each in resolving the financial difficulties of its own 
credit institutions; 
Whereas implementation of reorganization measures in 
respect of a credit institution operating in several Mem­
ber States should be entrusted to the competent authori­
ties of one Member State, namely that in which the 
credit institution has its head office; whereas those 
authorities must be empowered to enforce their own 
laws outside their national territory in consultation, as 
appropriate, with the competent authorities of the other 
Member States concerned; 
Whereas reorganization cannot be achieved unless all 
the legal obstacles which might prevent the reorganiza­
tion measures taken by the authorities of the home 
country from being effective against branches are elim­
inated; Whereas it is desirable, and sometimes necessary, to 
notify creditors and shareholders of the implementation 
of certain reorganization measures in countries where 
branches are situated, particularly when such measures 
could hinder them from exercising certain of their 
rights; 
Whereas it is essential to provide for a procedure to 
enable the Directive to be swiftly adjusted to changes 
in national rules on reorganization measures, which 
must continue to evolve at national level in the light 
of experience; whereas it is desirable to extend the 
responsibilities of the Advisory Committee set up under 
Council Directive 77/780/EEC i1) to this end, by 
empowering it to give an opinion on whether such 
changes should be adopted or rejected at Community 
level; 
Whereas in the absence of reorganization measures, 
or in the event of such measures failing, the credit 
institutions in difficulty must be wound up; whereas 
certain provisions should be made in such cases for 
coordinating the banking supervisory authorities' role 
in applying the winding-up measures; 
Whereas the important role played by the competent 
authorities in implementing reorganization measures 
before winding-up commences must continue after win­
ding-up has commenced so that the winding-up oper­
ations may be properly carried o\it; 
Whereas withdrawal of authorization to pursue the 
business of banking must be one of the necessary effects 
of winding-up credit institutions; whereas the com­
petent authorities may, however, maintain such autho­
rization in certain exceptional cases in order to facilitate 
the winding-up operations; 
Whereas it is acknowledged that, while it is pursuing 
its business, a credit institution and its branches form 
a single entity whose liquidity position and solvency 
are subject to supervision by the competent authorities 
of the home country; whereas it would be inexpedient 
to abandon this rule at a time when a credit institution 
is being wound up; 
Whereas equal treatment of creditors can be guaranteed 
only in so far as the credit institution is wound up 
according to the principles of unity and universality, 
which require that the administrative authorities and 
courts of a single State have jurisdiction, that the home 
country's law on winding-up be applied and that that 
law be effective outside the territory of the State con­
cerned; 
Whereas, however, winding-up must be governed by 
particular rules when an institution is solvent; whereas 
(J) OJ No L 322, 17. 12. 1977, p. 30. 
No C 356/56 Official Journal of the European Communities 31. 12. 85 
voluntary winding-up according to the statutory pro­
visions presupposes such solvency; whereas provision 
should be made for the competent authorities' to be 
empowered to ensure that the institution is solvent 
throughout the winding-up period; 
Whereas it should be made possible, by means of certain 
adjustments, for the competent authorities' role to be 
coordinated also in respect of branches of credit insti­
tutions whose head office is outside the Community; 
Whereas depositors' interests in the event of an insol­
vent credit institution being .wound up must be safe­
guarded by the guarantee schemes existing in the Euro­
pean Community, without discrimination in a given 
territory between branches of national or Community 
credit institutions and also without discrimination in a 
given institution between deposits made in the State 
where the head office is situated and those made in 
branches set up in other States, where no deposit-
guarantee scheme exists in those States, 
HAS ADOPTED THIS DIRECTIVE: 
TITLE I 
Scope and definitions 
Article 1 
1. This Directive shall apply to credit institutions 
and their branches as defined in the first and third 
indents of Article 1 of Directive 77/780/EEC, due regard 
being had to the conditions and exemptions laid down 
in Article 2 of that Directive. 
2. The provisions of this Directive concerning the 
branches of a credit institution whose head office is 
outside the Community shall apply only where that 
institution has branches in at least two Member States 
of the Community. 
Article 2 
1. For the purposes of this Directive, 'reorganization 
measures' means measures which are intended to safe­
guard or restore the financial situation of a credit 
institution and which satisfy the following conditions: 
(a) they are included in the list set out in the Annex 
to this Directive; 
(b) they are designed to avoid the opening of a wind­
ing-up procedure; 
(c) they were decided on before any declaration that 
the credit institution was insolvent. 
2. The following shall not be considered to be reor­
ganization measures, even if they are included in the 
list set out in the Annex. (a) measures taken as part of the normal supervision 
of credit institutions as defined in Article 7 of 
Directive 77/780/EEC, and measures intended to 
deal with infringements of laws or regulations; 
(b) measures taken in connection with bankruptcy 
proceedings, an arrangement or any other wind­
ing-up procedure already initiated. 
3. The measures referred to in paragraph 1 and the 
authorities responsible for implementing them shall be 
determined by the laws and regulations set out in the 
Annex. 
Article 3 
For the purposes of this Directive: 
— 'home country' means the Member State in which 
a credit institution has its head office, 
— 'host country' means any Member State — other 
than that defined as being the home country — in 
which a credit institution has set up a branch within 
the meaning of the third indent of Article 1 of 
Directive 77/780/EEC, 
— 'competent authorities' means the authorities 
empowered to grant and withdraw authorization 
and/or supervise the activities of credit institutions 
pursuant to Articles 3, 4, 6, 7 and 8 of Directive 77/ 
780/EEC and any other authority listed in the Annex 
to this Directive as being responsible for implement­
ing the reorganization measures. 
TITLE II 
Reorganization measures 
A. Credit institutions having their head office 
within the Community 
Article 4 
1. The authorities or courts of the home country 
shall be empowered to decide, in accordance with the 
rules, procedures and practices in force in their territory, 
on the implementation of one or more reorganization 
measures in a credit institution and its branches. 
2. The reorganization measures decided on by the 
competent authorities or court in the home country 
shall be fully effective as against the governing bodies 
and creditors of branches situated in the other Member 
States, even where the rules of the host country appli­
cable to them do not make provision for such measures 
or make their implementation subject to conditions 
which are not fulfilled. 
3. Decisions taken by the competent authorities or 
court in the home country to apply one or more reor­
ganization measures shall preclude the application or 
maintenance by the competent authorities or court in 
31. 12. 85 Official Journal of the European Communities No C 356/57 
the host country of any reorganization measure within 
the meaning of Article 2, unless a decision to the con­
trary is taken by the competent authorities of the home 
country. 
Article 5 
The competent authorities of the home country shall, 
before adopting any reorganization measure, inform, 
by all available means, the competent authorities of the 
host country, of their intention and consult them on 
the effects of such a measure in the host country, unless 
the measure concerned is clearly not likely to have 
any significant effect on a branch situated in another 
Member State. 
Article 6 
Where the competent authorities of the host country 
deem it necessary to implement in their territory one 
or more reorganization measures within the meaning 
of Article 2, they shall inform the competent authorities 
of the home country accordingly. 
Where, upon receipt of such information, the competent 
authorities of the home country consider that the diffi­
culties encountered by the branch are not such as to 
justify the application of Article 4 (1) and (2), they shall 
so inform the authorities of the host country, which may 
decide to apply one or more reorganization measures in 
their territory. 
Article 7 
1. Where implementation of the reorganization 
measures decided on pursuant to Article 4 (1) and (2) 
directly affects the rights of creditors established in a 
host country and where an appeal is possible in the 
home country against the decision ordering the 
measure, the competent authorities of the home country 
may, should they deem it necessary, publish at the 
expense of the credit institution an extract from their 
decision in the Official Journal of the European Com­
munities and in two nationally distributed newspapers 
in each host country. 
2. The competent authorities of the home country 
may, should they deem it expedient, notify the measure 
directly and individually to creditors resident in the 
Community whose rights are affected. 
3. The extract from the decision to be published or 
the notification shall specify, in the national language 
or languages of the States concerned, the purpose and 
legal basis of the decision taken, the time limits for 
lodging an appeal and the full address of the authorities 
or court competent to examine the appeal. 
4. The reorganization measures shall apply irrespec­
tive of the publicity measures prescribed in paragraphs 
1 to 3 and shall be fully effective as against creditors, unless the competent authorities of the home country 
or the law of that country governing the measures 
provide otherwise. 
5. Except in the case of individual notification, the 
time for lodging an appeal shall run from publication 
in the Official Journal of the European Communities. 
B. Credit institutions having their head office outside the 
Community 
Article 8 
1. Pending subsequent coordination of laws, regu­
lations and administrative provisions applying to the 
branches of credit institutions having their head office 
outside the Community, the authorities and courts of 
the host country shall retain the right to implement 
reorganization measures in accordance with the rules, 
procedures and practices in force in their territory, 
unless provision is made to the contrary in agreements 
concluded with the home country, in accordance with 
the Treaty, on the basis of the principle of reciprocity. 
2. However, the competent authority of the host 
country of a branch of a credit institution having its 
head office outside the Community which deems it 
necessary to implement one or more reorganization 
measures within the meaning of Article 2 shall, before 
adopting such measures, so inform, by all available 
means, the competent authorities of the other host 
countries in which the institution has set up branches 
included in the list mentioned in Article 3 (7) of Direc­
tive 77/780/EEC and published each year in the Official 
Journal of the European Communities, 
3. In cases of extreme urgency, the information 
referred to in paragraph 2 may be replaced by notifi­
cation of the measure, which must be made without 
delay to the competent authorities of the host country. 
4. The competent authorities of another host coun­
try may decide, save where the agreements referred to 
in paragraph 1 are applicable, that the reorganization 
measures of which they are informed, through the pro­
cedure referred to in paragraph 2 or the notification 
referred to in paragraph 3, shall take effect as against 
the governing bodies and creditors of branches situated 
in that host country, even if the rules applicable to 
them, by virtue of paragraph 1, do not provide for 
such measures or make their implementation subject to 
conditions which are not fulfilled. 
5. The publicity measures entrusted under Article 
7 (1) and (2) to the competent authorities of the home 
country shall, in the event of application of the pro­
visions of paragraph 4 of this Article, be entrusted to 
the competent authority of the host country referred to 
in paragraph 2. 
No C 356/58 Official Journal of the European Communities 31. 12. 85 
C. Adjustment of the Directive to changes in national legislation 
Article 9 
1. The list of reorganization measures given in the 
Annex shall be amended or supplemented in accordance 
with the procedure laid down in this Article. 
2. If a Member State wishes to make amendments 
or additions to the annexed list, it shall notify the 
proposed measure to the Commission, stating whether 
or not it involves provisions that may affect the rights 
of creditors. 
3. A Commission representative shall ask the Chair­
man of the Banking Advisory Committee set up by 
Directive 77/780/EEC, hereinafter referred to as the 
Committee, to refer the proposed measure to the Com­
mittee, asking the Committee to hold an emergency 
meeting if he considers that the situation so requires. 
4. The Committee shall deliver its opinion on the 
measure by a qualified majority of two-thirds of the 
votes; if, however, the proposed amendment concerns 
a measure that may affect the rights of creditors, the 
Committee shall deliver its opinion unanimously. 
5. Where the Committee delivers a favourable 
opinion on the amendment to the list, the Commission 
shall adopt the measure proposed. 
6. Where the Committee does not deliver such an 
opinion, the Commission shall without delay present 
to the Council, which shall act by a qualified majority, 
a proposal on the measure to be adopted. 
If the Council has not acted within six months of such 
referral, the proposed measure shall be adopted by the 
Commission. 
This provision shall not apply where the measure may 
affect the rights of creditors. In that case, the Com­
mission shall present to the Council a proposal for a 
Directive in the manner prescribed in Article 149 of the 
Treaty. 
7. The Member States may adopt the proposed 
measure without awaiting the decisions of the Commit­
tee and of the Council; however, decisions taken pursu­
ant to the measure shall not be covered by the provisions 
of this Directive, and in particular Article 4 (2) and (3). 
. Article 10 
Each Member State shall ensure that there are no legal 
impediments preventing any reorganization measures 
that may be decided on, in accordance with Article 4, 
by the competent authorities or court of the home 
country from being rendered applicable to branches 
which credit institutions, having their head office in another Member State, have set up in its territory; it 
shall consequently adopt, with due regard to the general 
principles of its own system, the laws, regulations and 
administrative provisions necessary to this effect. 
TITLE III 
Winding-up 
A. Credit institutions having their head office within the 
Community 
Article 11 
1. The competent authorities of the home country 
shall be consulted on any application from creditors, 
the debtor or the representative of the State for a 
compulsory winding-up procedure to be opened. 
2. The business of the credit institution shall be 
wound up in accordance with the law of the home 
country in so far as this Directive and the Convention 
on bankruptcy, winding-up, arrangements, compos­
itions and similar proceedings do not provide otherwise. 
3. Decisions on the winding-up of a credit institution 
taken by the administrative authorities or courts, or 
winding-up agencies, shall also be fully effective against 
the credit institution's branches situated in other Mem­
ber States and shall preclude the opening of any other 
winding-up procedure in respect of them, subject to the 
provisions of Article 12 (2). 
Article 12 
1. The competent authorities of the home country 
shall be consulted prior to any voluntary winding-up 
decision taken by the governing bodies of a credit 
institution. 
2. The voluntary winding-up of a credit institution 
shall not preclude the opening, at the request of the 
competent authorities of the home country, of a pro­
cedure for administrative or compulsory winding-up, if 
the governing bodies do not carry out such winding-up 
in a satisfactory manner, or there is good reason to 
believe that the institution is not in a position to fulfil 
its obligations to its creditors. 
Article 13 
1. Where a winding-up procedure is opened in 
respect of a credit institution in the absence or following 
the failure of reorganization measures, the competent 
authorities of the home country shall withdraw the 
authorization of the institution in accordance with the 
procedure provided for in Article 8 of Directive 77/780/ 
EEC. 
31. 12. 85 Official Journal of the European Communities No C 356/59 
2. However, exceptionally, the withdrawal of autho­
rization shall not prevent the person or persons 
entrusted with the winding-up from carrying on some 
of the activities of the credit institution with the consent 
and under the supervision of the competent authorities 
of the home country, in so far as this is necessary for 
the purposes of the winding-up. This provision shall be 
applicable in the host country only if the law on the 
withdrawal of banking authorization does not provide 
otherwise. 
3. In the event of voluntary winding-up, the authori­
zation provided for in Article 3 of Directive 77/780/EEC 
may be maintained until completion of the winding-up 
operations provided the institution continues to satisfy 
the conditions of the authorization. 
Article 14 
1. Winding-up shall be carried out under the super­
vision of the competent authorities of the home country 
in collaboration with the competent authorities of the 
host country. 
2. Liquidators shall be entitled to exercise in the 
territory of all the Member States all the powers which 
they are entitled to exercise in the territory of the 
Member State in which the winding-up procedure is 
opened. However, even if the law of the Member State 
in which the winding-up procedure is opened does not 
provide for the possibility of more than one liquidator 
being appointed, the competent authorities of a host 
country may, if they deem it necessary, request the 
appointment of a liquidator from among the persons 
exercising the functions of liquidator in their territory, 
similarly, where the law of the Member State in which 
the winding-up procedure is opened permits the dele­
gation of certain powers to other persons, such persons 
shall, at the request of the competent authorities of the 
host country, be chosen from among the persons able 
to exercise the functions of liquidator in that country. 
B. Credit institutions having their head office outside the 
Community 
Article 15 
1. Where the law of the host country provides for the 
possibility of winding-up a branch of a credit institution 
having its head office outside the Community, such 
winding-up shall be decided on by the competent autho­
rities of the host country. 
2. The competent authorities of the host country 
referred to in paragraph 1 shall withdraw the authoriza-
' tion of the branch if the branch was granted a separate 
authorization in accordance with Article 4 (4) of Direc­
tive 77/780/EEC. 
3. The competent authorities referred to in para­
graphs 1 and 2 shall inform the competent authorities 
of the other host countries that authorization has been 
withdrawn and a winding-up procedure opened. 4. The competent authorities of the host countries 
other than the host country referred to in paragraphs 
1 and 2 may decide to withdraw any separate authoriza­
tion granted to the branch set up in their territory. 
5. Exceptionally, the withdrawal of authorization 
shall not prevent the person or persons entrusted with 
the winding-up from carrying on certain of the activities 
of the branch with the consent of the competent autho­
rities and/or under the supervision of the competent 
courts, in so far as the law of the host country so 
permits. 
6. Withdrawal of authorization shall not bring to an 
end the supervision of the activities of a branch by the 
competent authorities of the host country. 
TITLE IV 
Deposit-guarantee schemes 
Article 16 
1. Member States shall ensure that the deposit-
guarantee schemes that exist in their territory cover the 
deposits of branches of institutions having their head 
office in another Member State. 
2. As a transitional measure, pending entry into force 
of a deposit-guarantee scheme in all Member States, 
the latter shall ensure that the deposit-guarantee 
schemes, in which the institutions that have their head 
office in their territory take part, extend cover to 
deposits received by branches set up in host countries 
within the Community which have no deposit-guaran­
tee scheme, under the same conditions as those laid 
down to guarantee deposits received in the home 
country. 
TITLE V 
Final provisions 
Article 17 
1. Member States shall adopt the laws, regulations 
and administrative provisions necessary to comply with 
this Directive not later than 1 January 1990. They shall 
forthwith inform the Commission thereof. 
Member States may stipulate that such provisions shall 
not apply until two years after that date. 
2. Member States shall communicate to the Com­
mission the texts of the main provisions of national law 
which they adopt in the field governed by this Directive. 
Article 18 
This Directive is addressed to the Member States. 
No C 356/60 Official Journal of the European Communities 31. 12. 85 
ANNEX 
List of the reorganization measures provided in Article 2 (1) of the draft Directive on the coordination of 
laws, regulations and administrative provisions relating to the reorganization and the winding-up of credit 
institutions 
BELGIUM 
Banks 
— On-the-spot investigations and expert appraisals 
Article 19, paragraph 3, 2° and paragraph 4 of Royal Decree No 185 of 9 July 1935 on the supervision of 
banks and the rules on issues of stocks and securities (penal sanction: Article 42, 9° of the Decree). 
Competent authority responsible for deciding on the investigation or appraisal: Banking Commission 
('Commission Bancaire'). / 
Competent authorities responsible for conducting the investigation or appraisal: Banking Commission 
and the Banque Nationale de Belgique, at the request of the Banking Commission. 
— Appointment of a special auditor 
Article 25, § 1, paragraphs 1 and 2, 1° and § 2 of Royal Decree No 185 of 9 July 1935 (penal sanction for 
persons carrying out acts without the authorization of the special auditor: Article 42, 2° bis of the Royal 
Decree). 
Competent authority responsible for appointing the special auditor: Banking Commission. 
— Suspension of all or part of a credit institution's activities 
Article 25, § 1, paragraphs 1 and 2, 2° and § 3 of Royal Decree No 185 of 9 July 1935 (penal sanction for 
persons carrying out acts in contravention of suspension decision: Article 42, 2° bis of the Royal Decree). 
Competent authority responsible for suspending activities: Banking Commission; an appeal may be made 
to the Ministry of Finance, which confirms or reverses the decision. 
Private savings banks 
— On-the-spot investigations and expert appraisals 
Article 16, paragraph 4,2° and paragraph 5 of the provisions concerning the supervision of private savings 
banks, coordinated by the Royal Decree of 23 June 1967 (penal sanction: Article 35 of the coordinated 
provisions). 
Competent authority responsible for deciding on the investigation or expert appraisal: Banking Com­
mission. 
Competent authorities responsible for carrying out the investigation or expert appraisal: the Banking 
Commission and the Banque Nationale de Belgique, at the request of the Banking Commission. 
— Appointment of a special auditor 
Article 17 bis, § 1, paragraphs 1 and 2, 1° and § 2 of the coordinated provisions (penal sanction: Article 
32, 4° of the coordinated provisions). 
Competent authority: Banking Commission. 
— Suspension of all or part of a credit institutions activities 
Article 17 bis, § 1, paragraphs 1 and 2, 2° and § 3 of the coordinated provisions (penal sanction: Article 
32, 4° of the coordinated provisions). 
Competent authority and appeal: Banking Commission; an appeal may be made to the Ministry of 
Finance, which confirms or reverses the decision. 
— The King has the power, in the Decree revoking a private savings bank's authorization to operate, to 
take appropriate measures to safeguard the rights of depositors (especially the transfer of privileged 
savings funds and encumbered assets). 
Article 23 of the coordinated provisions. 
Undertakings governed by Chapter 1 of the Law of 10 June 1964 
— On-the-spot investigations and expert appraisals 
Article 6, § 1, paragraph 3, 2° and paragraph 4 of the Law of 10 June 1964 on the raising of funds from 
the public (penal sanction: Article 13, 4° of the Law). 
31. 12. 85 Official Journal of the European Communities No C 356/61 
Competent authority responsible for deciding on the investigation or expert appraisal: Banking Com­
mission. 
Competent authorities responsible for carrying out the investigation or expert appraisal: Banking Com­
mission and the Banque Nationale de Belgique at the request of the Banking Commission. 
— Appointment of a special auditor 
Article 9 bis, § 1, paragraphs 1 and 2, 2° and § 2 of the Law (penal sanction: Article 13, 5° of the Law). 
Competent authority: Banking Commission. 
— Suspension of all or part of a credit institution's activities 
Article 9 bis, § 1, paragraphs 1 and 2, 2° and § 3 of the Law (penal sanction: Article 13, 5° of the Law). 
Competent authority and appeal: Banking Commission; an appeal may be made to the Ministry of 
Finance, which confirms or reverses the decision. 
Public credit institutions 
Savings Bank of the General Savings and Pension Fund ('Caisse d'Epargne de la Caisse Generate d'Epargne 
et de Retraite') 
— On-the-spot investigations and expert appraisal 
Article 1, paragraph 2 of Royal Decree No 2 on the supervision of the Savings Bank of the General 
Savings and Pensions Fund. 
Competent authority responsible for deciding on the investigation or expert appraisal: Banking Com­
mission. 
Competent autorities responsible for carrying out the investigation or expert appraisal: Banking'Com-
mission and the Banque National de Belgique, at the request of the Banking Commission. 
— Other measures: no special measures; responsibility of Parliament and the government. 
DENMARK 
— Article 46 of Law No 35 of 30 January 1981. 
The supervisory authorities for banks and savings banks can declare cessation of payments for banks or 
savings banks, when it is necessary in the interests of the depositors. The declaration cannot be revoked by 
the bank or savings bank without the agreement of the supervisory authorities. 
The declaration should be sent to the Court 'skifteretten' which is a part of the Court system. 
FRANCE 
Measures provided for by Law No 84/46 of 24 January 1984 concerning the activity and supervision of credit 
institutions. 
Measures to be taken by the Banking Commission ('Commission bancaire'): 
— injunctions (Article 43), 
— appointment of a temporary administrator (Article 44), 
— prohibition of certain operations and other limitations on activity (Article 45, § 3), 
— temporary suspension or compulsory resignation of one or more of the persons responsible for actually 
determining the general patterns of the activity of credit institutions (Article 45, § 4 and 5). 
Measures to be taken by the Governor of the Banque de France: 
— organization of the assistance of all credit institutions with a view to taking the measures necessary for 
protecting the interests of depositors and third parties, for the functioning of the banking system and for 
preserving the reputation of local banking (Article 52). 
GERMANY 
Measures taken pursuant to Section 46 of the Banking Act: 
— instructions issued to directors, 
— prohibition or limitation of the right to make payments* 
— prohibition or limitation of the right to act as director or proprietor, 
— appointment of persons responsible for supervising the institution. 
No C 356/62 Official Journal of the European Communities 31. 12. 85 
Measures taken pursuant to Section 46a of the Banking Act(1): 
— ban on making payments or disposing of property, 
— closure of a credit institution's counters for business with customers, 
— ban on the acceptance of payments not intended for the discharge of debts to a credit institution. 
Competent authority: Federal Banking Supervisory Office (Bundesaufsichtsamt fur das Kreditwesen). 
GREECE 
Measures provided for by 
(a) the Law 1665/1951 organizing the Banking Prudential Control, the administrative winding-up of banks, 
the appointment of a Commissioner, liquidation and revocation of licence; 
(b) Law 236/75 organizing the appointment of a temporary Commissioner in cases of special urgency and 
importance; 
(c) Law 431/76 providing for compulsory doubling of share capital of banks under certain conditions 
considered as constituting a state of insolvency; 
(d) Law 2292/1953 (especially Articles 10 to 12) dealing with compulsory mergers of banking corporations. 
A. Measures to be taken by the Bank of Greece under the general law 1266/1982 
(i) Compulsory increase of capital (Law 1665/1951, Article 6); 
(ii) Appointment of a Commissioner (Law 1665/1951, Article 8); 
(iii) Appointment of a temporary Commissioner in cases of special importance and urgency (Law 236/75); 
(iv) Obligatory increase (doubling) of share capital by banks who have been placed repeatedly under a 
Commissioner or temporary Commissioner and whose share capital and surplus is less than 1/70 of the 
total of their deposits (Law 431/76). 
B. Measures to be taken by the Government (Council of Ministers and Minister of Commerce) 
Compulsory merger of banks and compulsory increase of initial share capital by 1/3 at least (Law 2292/1953, 
Articles 10 to 12). 
IRELAND 
Measures relating to licensed banks where the legislative references are to the Central Bank Act, 1971 and 
where the competent authority is the Central Bank of Ireland: 
— suspension of the right to receive deposits and make payments (Section 21), 
— restriction of the scope of authorization (Section 10), 
— prohibition or restriction of advertising concerning deposits (Section 22). 
Measures relating to building societies where the legislative references are to the Building Societies Act, 1976 
and where the competent authority is the Registrar of Friendly Societies: 
— restriction on authorization (Section 11), 
— loans from one society to another (Section 24), 
— union of societies (Section 25), 
— transfer of and undertaking to fulfil engagements (Section 26), 
— confirmation and registration of union under Section 25 or transfer of undertaking under Section 26 
(Section 27), 
— power of registrar to appoint an inspector or call a special meeting (Section 29), 
— power of registrar to suspend the raising of funds and making of payments (Section 31), 
— power of registar to suspend and control advertising (Section 32). 
(') These measures are also listed,in Article 1(b) of the Protocol to the draft Convention on bankruptcy, winding-up, 
arrangements, compositions and similar proceedings. 
31. 12. 85 Official Journal of the European Communities No C 356/63 
ITALY 
(a) Request for information of the economic situation of the credit institution or its branches (Section 31 of 
the Banking Act); 
Competent authority: Banca d'ltalia 
(b) Investigations at the credit institution and its branches (Section 31 of the Banking Act); 
Competent authority: Banca d'ltalia 
(c) Convening of shareholders' meetings and governing bodies of the credit institutions with a view to 
taking special measures (Section 35 of the Banking Act); 
Competent authority: Banca d'ltalia 
(d) Withdrawal of the internal administrative and supervisory bodies and appointment in their place of 
special bodies for the reorganization of the credit institution (Section 57 of the Banking Act); 
Competent authority. Ministry of the Treasury on a proposal from the Banca d'ltalia (for appointment 
of the special bodies, only the Banca d'ltalia) 
(e) Temporary suspension of payments and of any executive procedure in respect of the credit institution 
during the special administration referred to at (d) (Section 63 of the Banking Act); 
Competent authority: Banca d'ltalia 
(f) Temporary suspension of the functions of the credit institution's administrative and supervisory bodies 
and appointment of an official of the Banking Supervisory Authority to perform tasks in their place 
(Section 66 of the Banking Act); 
Competent authority: Banca d'ltalia 
(g) Withdrawal of the authorization to operate in respect of the credit institution's individual branches on 
account of administrative shortcomings (Section 34 of the Banking Act); 
Competent authority: Interministerial Committee for Credit and Savings (Comitato interministeriale per 
il credito ed il risparmio) 
LUXEMBOURG 
Measures provided for by the Law of 10 August 1982 organizing: 
1. the right of the Luxembourg Monetary Institute ('Institut Monetaire Luxembourgeois') to suspend credit 
institutions; 
2. suspension of payments; supervised administration and the winding-up of credit institutions. 
Measures to be taken by the Luxembourg Monetary Institute: 
— injunctions (in the event of a crisis) (Article 2), 
— suspension of directors (Article 3) (not applicable to institutions governed by Luxembourg public law), 
— total or partial suspension of activities (Article 3). 
Measures to be taken by the district court ('Tribunal d'Arrondissement') sitting as a commercial court (where 
appropriate, at the request of the Luxembourg Monetary Institute): 
— suspension of payments and supervised administration (Articles 7 to 10) (not applicable to institutions 
governed by Luxembourg public law). 
NETHERLANDS 
Measures provided by the law of 13 April 1978 concerning the supervision of credit institutions: 
— injunctions, 
— secret trusteeship (Part HI, section 24), 
— emergency regulations (Part V, section 31), 
Competent authority: Central Bank (De Nederlandsche Bank) 
UNITED KINGDOM 
'Measures available to the Bank of England: 
— the power to appoint one or more competent persons to investigate and report on the state and conduct 
of the business of an authorized institution (Banking Act 1979, Section 17), 
— the power to revoke outright an institution's authorization (Banking Act 1979, Section 7 (l)(a)), 
— the power to revoke an institution's authorization and to grant in its place a conditional licence (Banking 
Act 1979, Section 7 (l)(b) and Section 10), 
— the power, when revoking outright an institution's authorization, to give directions as to the conduct of 
the business (Banking Act 1979, Sections 8 and 9).