1. 6. 81 Official Journal of the European Communities No C 130/1 
II 
(Preparatory Acts) 
COMMISSION 
Proposal for a Council Directive concerning the annual accounts of banks and other financial 
institutions 
(Submitted by the Commission to the Council on 19 March 1981) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 54 (3) 
(g) thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European 
Parliament, 
Having regard to the opinion of the Economic and Social 
Committee, 
Whereas Council Directive 78/660/EEC (*) concerning 
the annual accounts of limited companies need not be 
applied to banks and other financial institutions, 
hereinafter referred to as 'credit institutions', pending 
subsequent coordination; whereas, in view of the central 
importance of these undertakings in the Community, 
such coordination cannot be delayed any longer 
following implementation of Directive 78/660/EEC; 
Whereas such coordination has also become urgent 
because more and more credit institutions are operating 
across national frontiers; whereas, for creditors, debtors 
and members and for the general public, improved 
comparability of the annual accounts of these 
institutions is therefore of crucial importance; 
Whereas, in virtually all the Member States of the 
Community, institutions of differing legal forms are in 
competition with one another in the credit sector; 
whereas it is therefore appropriate not to confine 
coordination to the legal forms covered by Directive 78/660/EEC, but to choose a scope which is in line with 
that of Council Directive 77/780/EEC relating to the 
taking up and pursuit of the business of credit 
institutions (2); 
Whereas the link with the coordination of legislation 
relating to credit institutions is also important because 
aspects of the provisions governing annual accounts will 
inevitably have an impact on other areas of such 
coordination, such as authorization requirements and the 
indicators used for supervisory purposes; 
Whereas although, in view of the specific characteristics 
of credit institutions, it appears appropriate to propose a 
separate Directive on annual accounts for such 
undertakings; this must not result in a set of standards 
being established which is separate from Directive 
78/660/EEC; whereas such separate standards would be 
neither appropriate or consistent with the basic 
principles underlying the coordination of company law, 
since, given the central place which they occupy in the 
economy of the Community, credit institutions cannot be 
excluded from the framework of standards devised for 
undertakings generally; whereas, for this reason only the 
particular characteristics of credit institutions are taken 
into account, and this Directive therefore deals only with 
exceptions to the rules contained in Directive 
78/660/EEC; 
Whereas in each Member State an essential characteristic 
of credit institutions is the difference in structure and 
content of their balance-sheets; whereas this Directive 
must therefore lay down the same structure and the same 
item designations for the balance sheets of all credit 
institutions in the Community; 
(J) OJ No L 222, 14. 8. 1978, p. 11. (2) OJ No L 322, 17. 12. 1977, p. 30. 
No C 130/2 Official Journal of the European Communities 1. 6. 81 
Whereas, if the annual accounts are to be comparable, a 
number of basic questions regarding the presentation of 
certain transactions in the balance sheet must be settled; 
Whereas, in the interests of greater comparability, it is 
also necessary that the content of certain balance sheet 
items be determined precisely; 
Whereas the same also applies to the composition and 
definition of certain items in the profit and loss account; 
Whereas the comparability of figures in the balance sheet 
and profit and loss account also depends crucially on the 
values at which assets or liabilities are entered in the 
balance sheet; whereas, in view of the principle of 
prudence and the need to maintain confidence in the 
stability of the credit industry, it is necessary to allow 
credit institutions some flexibility in the valuation of 
assets, particularly in the valuation of loans and 
advances; whereas credit institutions should also be 
permitted to show in the profit and loss account only the 
balance resulting from the set-off between charges 
corresponding to value adjustments in respect of certain 
items and income from the writing-back of such value 
adjustments; 
Whereas, in view of the special nature of credit 
institutions, certain changes are also necessary with 
regard to the notes on the annual accounts; 
Whereas, in line with the intention to cover as many 
credit institutions as possible, as was the case with 
Council Directive 77/780/EEC, derogations are not 
provided for small and medium-sized credit institutions, 
such as are provided for under the terms of Directive 
78/660/EEC; whereas, nevertheless, if, in the light of 
experience, such derogations prove necessary, it will be 
possible to provide for them in a subsequent measure of 
coordination; 
Whereas, taking account of the importance of banking 
networks which extend beyond national frontiers and 
their Constant development, it is important that the 
annual accounts of a credit institution having its head 
office in one Member State, should be published in all the 
Member States where it is established and that this 
publication should be made in the official languages of 
the Merftber States concerned; 
Whereas the examination of problems which arise in 
connection with the present Directive, notably 
concerning its application, require the cooperation of 
representatives of the Member States and the 
Commission in the form of a Contact Committee; 
whereas, in order to avoid the proliferation of such 
committees, it is desirable that the said cooperation be 
achieved by means of the committee provided for in Article 52 of Directive 78/660/EEC; whereas, 
nevertheless, when examining problems concerning 
credit institutions, the committee will be appropriately 
constituted; 
Whereas, in view of the complexity of the matter, the 
credit institutions covered by this Directive must be 
allowed a longer period than usual to implement the 
provisions thereof; whereas, pending subsequent 
coordination, the Member States should also be allowed 
to defer the application of certain provisions of this 
Directive to certain specialized credit institutions where 
immediate application would cause major adjustment 
problems, 
HAS ADOPTED THIS DIRECTIVE: 
SECTION 1 
Preliminary provisions and scope 
Article 1 
1. The provisions of Directive 78/660/EEC shall 
apply to credit institutions within the meaning of Article 
2 of this Directive, except in the cases expressly provided 
for in this Directive. 
2. Where reference is made in Directive 78/660/EEC 
to Articles 9 and 10 (balance sheet) or to Articles 23 to 
26 (profit and loss account) of that Directive, such 
references shall be deemed to be references to Article 4 
(balance sheet) or to Articles 29 and 30 (profit and loss 
account) of this Directive. 
3. Where reference is made in Directive 78/660/EEC 
to balance sheet items which do not appear as separate 
balance sheet items in this Directive, such references shall 
be deemed to be references to the items in Article 4 of this 
Directive which include the assets in question. 
Article 2 
1. The coordination measures prescribed by this 
Directive shall apply to all credit institutions within the 
meaning of Article 1 of Directive 77/780/EEC, where 
such institutions are companies or firms within the 
meaning of the second paragraph of Article 58 of the 
Treaty. 
2. This Directive shall also apply to all other 
companies or firms whose principal activity is to receive 
deposits or other repayable funds, for their own account, 
or to grant credits (including guarantees), to acquire 
1. 6. 81 Official Journal of the European Communities No C 130/3 
participating interests or make investments, in so far as 
such companies or firms have not been made subject to 
Directive 78/660/EEC 
3. This Directive shall not apply to: 
(a) the credit institutions listed in Article 2 (2) of 
Directive 77/780/EEC; 
(b) the following credit institutions: 
— in the Netherlands: credit institutions which by 
virtue of Article 8 of the 'Wet Toezicht 
Kredietwezen' (x) are not subject to Article 11 of 
the aforesaid law, 
— in the United Kingdom: 'Friendly Societies' and 
'Industrial and Provident Societies'. 
4. Member States may defer application of this 
Directive to: 
(a) the credit institutions referred to in Article 2 (5) of 
Directive 77/780/EEC, and included in the 
Commission communication of 14 October 1978 (2), 
for so long as the application to them of Directive 
77/780/EEC is deferred; 
(b) other specialized credit institutions, where, because 
of the nature of their business, immediate 
application would create serious problems; in this 
case, these institutions must be notified to the 
Commission within six months of the notification of 
this Directive. Member States may decide to defer 
application of this Directive to these institutions 
pending further coordination and until 1 January 
1988 at the latest; 
SECTION 2 
General provisions concerning the balance sheet and the 
profit and loss account 
Article 3 
1. Article 4 (2) of Directive 78/660/EEC shall not 
apply to credit institutions. 
2. The possibility of combining items pursuant to 
Article 4 (3) of Directive 78/660/EEC shall, in the case of 
credit institutions, be restricted to balance sheet and 
profit and loss account sub-items preceded by lower case 
letters and shall be available only within the framework 
of the appropriate rules laid down by the Member States. 
C1) Adopted on 13 April 1978, 'Staatsblad' 1978, 255. 
(2) OJ No C 244, 14. 10. 1978, p. 2. SECTION 3 
Layout of the balance sheet 
Article 4 
The Member States shall prescribe the following layout 
for the balance sheet. 
Assets 
1. Cash in hand, balances with central banks and 
postal cheque offices. 
2. Treasury bills and similar debt instruments of 
public bodies. 
3. Loans and advances to credit institutions: 
(a) repayable on demand; 
(b) with agreed maturity dates or periods of notice: 
(ba) of less than three months, 
(bb) of three months or more. 
4. Bill portfolio. 
5. Loans and advances to customers: 
(a) repayable on demand; 
(b) with agreed maturity dates or periods of notice. 
6. Debt securities held in portfolio: 
(a) issued by public bodies; 
(b) issued by other borrowers, including own debt 
securities. 
7. Subordinated claims and debt securities. 
8. Shares and other variable-yield securities, 
including: 
— participating interests; 
— shares in affiliated undertakings. 
9. Assets as listed in Article 9, Assets B, C I and C II 
(2), (3) and (4) of Directive 78/660/EEC, including: 
— formation expenses; 
— goodwill, to the extent that it was acquired for 
valuable consideration; 
— assets listed in Article 9, Assets C II (2), (3) and 
(4) of Directive 78/660/EEC. 
NoC 130/4 Official Journal of the European Communities 1. 6. 81 
10. Land and buildings. 
11. Subscribed capital unpaid, 
— called-up capital (unless national law provides 
for called-up capital to be included under 
liabilities, in which case capital called but not 
yet paid up must be included either in item 11 of 
the assets or in item 14 of the assets). 
12. Own shares 
— in addition: nominal/accounting par value. 
13. Other assets. 
14. Subscribed capital, called but not paid-up (unless 
national law provides that called-up capital be 
shown as an asset under item 11). 
15. Accruals and deferred income. 
16. Loss for the financial year (unless national law 
provides for its inclusion under item 13 of the 
liabilities). 
Total assets 
Liabilities 
1. Amounts owed to credit institutions: 
(a) repayable on demand; 
(b) with agreed maturity dates or periods of notice: 
(ba) of less than three months, 
(bb) of three months or more. 
2. Amounts owed to customers other than credit 
institutions: 
(a) repayable on demand; 
(b) with agreed maturity dates or periods of notice; 
(c) savings deposits and savings bonds. 
3. Commitments represented by certificates: 
(a) debt securities issued; 
(b) other. 
4. Other liabilities. 
5. Accruals and deferred income. 
6. Profit for the financial year (unless national law 
provides for its inclusion under item 13 of the 
liabilities). 
7. Provisions for liabilities and charges: 
(a) provisions for pensions and similar obligations; (b) provisions for taxation; 
(c) other provisions. 
8. Subordinated liabilities. 
9. Subscribed capital (unless national law provides for 
called-up capital to be shown under this item. In 
that case, the amounts of subscribed capital and 
paid-up capital must be shown separately). 
10. Share premium account. 
11. Reserves. 
12. Profit or loss brought forward. 
13. Profit or loss for the financial year (unless national 
law provides for this item to be shown under 
'Assets' item 16 or 'Liabilities' item 6). 
Total Liabilities 
Below the Line items 
1. Contingent liabilities: 
(a) endorsements; 
(b) guarantees and indemnities; 
(c) assets pledged as collateral security for liabilities 
of third parties. 
2. Commitments arising from forward transactions. 
3. Commitments arising from sale and repurchase 
transactions. 
Article 5 
1. The Member States shall prescribe that the 
following shall be shown separately in sub-items to the 
respective items: 
— claims, whether or not represented by certificates, on 
affiliated undertakings and contained in 'Assets' 
items 3 to 7; 
— claims, whether or not represented by certificates, on 
undertakings with which the credit institution is 
linked by virtue of a participating interest and 
contained in 'Assets' items 3 to 7; 
— liabilities, whether or not represented by certificates, 
to affiliated undertakings and contained in 
'Liabilities' items 1, 2, 3 and 8; 
— liabilities, whether or not represented by certificates, 
to undertakings with which the credit institution is 
linked by virtue of a participating interest and 
contained in 'Liabilities' items 1, 2, 3 and 8. 
1. 6. 81 Official Journal of the European Communities No C 130/5 
2. The Member States may, however, permit this 
information, broken down by the items referred to in 
paragraph 1, to be shown in the notes. 
Article 6 
1. Assets shall be shown under the relevant balance 
sheet headings even where the credit institution drawing 
up the balance sheets has pledged them as security for its 
own liabilities or for those of third parties or has 
otherwise assigned them as security to third parties. 
2. The credit institution drawing up the balance sheet 
shall not include in its balance sheet assets pledged or 
otherwise assigned to it as security unless such assets are 
in the form of cash. 
Such securities other than in the form of cash shall be 
shown as a total in the notes where this is necessary to 
provide a true and fair view of the credit institution's 
assets, liabilities, financial position and profit or loss. 
Article 7 
1. Where a Joan has been granted by a syndicate 
consisting of a number of credit institutions, each credit 
institution participating in the syndicate shall include in 
the balance sheet only that part of the total loan which it 
has itself funded. 
2. If, in the case of syndicated loans, the amount of 
funds guaranteed by the credit institution drawing up the 
balance sheet exceeds the amount which it has made 
available any additional guarantee portion shall be 
shown as a contingent liability (in item lb below the 
line). 
3. The above provisions shall also apply to any other 
type of transaction carried out by syndicates. 
Article 8 
1. Funds which a credit institution receives for 
retransmitting to third parties in its own name but for the 
account of third parties shall be shown in the balance 
sheet only if the credit institution acquires legal title to 
the claims thereby established. 
The total amounts of such claims and liabilities shall be 
shown separately. 
2. Loans granted in the name and for the account of 
third parties shall not be included in the balance sheet. Article 9 
1. The classification by maturity of certain assets and 
liabilities shall be based on the originally agreed maturity 
or period of notice. However, where a credit institution 
has acquired an existing loan not represented by a 
certificate, it shall classify that loan on the basis of the 
remaining maturity as at the date on which it was 
acquired. 
2. The originally agreed maturity for loans shall be 
the period between the date of first drawing and the date 
of repayment. The period of notice shall be deemed to be 
the period between the date on which notice is given and 
the date on which repayment is to be made. 
3. If loans and advances or other claims are 
redeemable by instalments, the agreed maturity shall be 
the period between the date on which such loans and 
advances or other claims arose and the date on which the 
last instalment falls due. 
4. Only those amounts which can at any time be 
withdrawn without notice or for which a maturity or 
period of notice of not more than 24 hours or one 
working day has been agreed shall be regarded as 
repayable on demand. 
5. The Member States may permit deviations from the 
provisions of paragraphs 2 to 4 provided that this is 
necessary to provide a true and fair view of the credit 
institution's assets, liabilities, financial position and 
profit or loss. In such cases, credit institutions shall 
indicate in the notes the extent to which they have 
deviated from these provisions. 
Article 10 
1. Sale and repurchase transactions are transactions 
which involve the transfer by a credit institution or 
customer (the 'transferor') to another credit institution 
or customer (the 'transferee') of assets which belong to it, 
in particular, bills, claims or securities against payment 
of a specified amount, subject to an agreement that the 
same assets be repurchased by the transferor, at the 
purchase price or a different amount determined in 
advance, at a specified or still to be specified date. 
2. If the transferee undertakes to return the assets at a 
date determined in advance or to be determined by the 
transferor, the transaction in question shall be deemed to 
be a genuine sale and repurchase transaction. 
3. If, however, the transferee is merely entitled to 
return the assets at the purchase price or for a different 
No C 130/6 Official Journal of the European Communities 1. 6. 81 
amount agreed in advance at a specified or still to be 
specified date, the transaction in question shall be 
deemed to be a sale with an option to repurchase. 
4. In the case of the genuine sale and repurchase 
transactions referred to in paragraph 2, the assets 
transferred shall continue to be carried on the balance 
sheet of the transferor; the purchase price received by the 
transferor shall be entered as an amount owed to the 
transferee. 
5. In the case referred to in paragraph 3, however, the 
transferor is not entitled to enter in his balance sheet the 
assets transferred, and these items shall be carried as 
assets in the transferee's balance sheet. The transferor 
shall enter in item 3 below the line a contingent liability 
equal to the amount agreed in the event of repurchase. 
6. Forward exchange transactions, options, 
transactions involving the issue of debentures with a 
commitment to repurchase all or part of the issue before 
maturity and any similar transactions shall not be 
regarded as sale and repurchase transactions within the 
meaning of this Article. 
SECTION 4 
Special provisions relating to certain balance sheet items 
Article 11 
Assets: Item 1 
Cash in hand and balances with central hanks and postal 
cheque offices 
1. Cash in hand shall comprise legal tender including 
foreign notes and coin. 
2. This item may include only balances with the 
central bank and postal cheque offices of the country in 
which the registered office of the credit institution 
drawing up the balance sheet is located, together with 
balances of the credit institution's branches with such 
bodies in their respective host countries. These balances 
must be readily available at any time. Other claims on 
such bodies shall be shown as loans and advances to 
credit institutions ('Assets' item 3) or as loans and 
advances to customers ('Assets' item 5). Article 12 
Assets: Item 2 
Treasury bills and similar debt instruments of public 
bodies 
1. This item shall comprise treasury bills, treasury 
certificates and similar debt instruments of public bodies 
with an initially agreed maturity of not more than two 
years which are eligible for rediscount with the central 
bank. 
2. Those debt instruments of public bodies which fail 
to meet one of the two conditions mentioned shall be 
shown under 'Assets' sub-item 6 (a). 
Article 13 
Assets: Item 3 
Loans and advances to credit institutions 
1. Loans and advances to credit institutions shall 
comprise all types of asset in the form of claims on 
domestic or foreign credit institutions, which arise from 
banking transactions, irrespective of their particular 
designation. The only exception shall be claims on credit 
institutions represented by commercial bills or debt 
securities, which shall be shown under 'Assets' items 4 
and 6 respectively. 
2. Credit institutions within the meaning of this 
Article shall include all undertakings which are 
considered to be credit institutions under Directive 
77/78 0/EEC, as well as foreign central banks, 
international organizations with a banking character and 
all private and public undertakings which have their 
registered offices outside the Community and which 
satisfy the definition in Article 1 of Directive 
77/780/EEC. 
Loans and advances to undertakings which do not satisfy 
the abovementioned conditions shall be shown under -
'Assets' item 5. 
Article 14 
Assets: Item 4 
Bill portfolio 
This item shall comprise all bills held in portfolio whose 
countervalues have been credited to a credit institution 
or customer, provided that they do not come under 
'Assets' item 2 as treasury bills or under 'Assets' items 3 
or 5 as bills for collection. 
1. 6. 81 Official Journal of the 
Article 15 
Assets: Item 5 
Loans and advances to customers 
Loans and advances to customers shall comprise all types 
of asset in the form of claims on domestic or foreign 
customers (other than credit institutions), irrespective of 
their particular designation. The only exception shall be 
claims on customers represented by commercial bills or 
debt securities, which shall be shown under 'Assets' items 
4 and 6 respectively. 
Article 16 
Assets: Item 6 
Debt securities held in portfolio 
1. This item shall comprise fixed-interest marketable 
debt securities issued by credit institutions, by other 
undertakings or by public bodies; debt securities issued 
by the latter, however, shall be included only if they are 
not to be shown under 'Assets' item 2. 
2. Instruments carrying interest rates that vary in line 
with a specific factor, in particular the interest rate on the 
inter-bank market or on the Euromarket, shall also be 
regarded as fixed-interest debt securities. 
3. Only those own debt securities which are intended 
to be resold on the market may be included in sub-item 
6(b). 
Article 17 
Assets: Item 7 
Subordinated claims and debt securities 
Where it has been agreed that, in the event of winding up 
or of bankruptcy, claims arising from loans and advances 
or debt securities are to be repaid only after the claims of 
all other creditors have been met, the loans and advances 
or debt securities in question shall be shown under 
'Assets' item 7. 
Article 18 
Assets: Item 12 
Own shares 
Own shares shall be shown in the balance sheet only if 
national law so permits. Besides the balance sheet value, 
there shall be indicated the nominal value or, in the 
absence of a nominal value, the accounting par value of 
the own shares. European Communities No C 130/7 
Article 19 
Liabilities: Item 1 
Amounts owed to credit institutions 
1. Amounts owed to credit institutions shall include 
all types of claim, arising from banking transactions, of 
other domestic or foreign credit institutions, on the credit 
institution drawing up the balance sheet, irrespective of 
their particular designation. The only exception shall be 
commitments represented by debt securities evidenced in 
some other form, which shall be shown under 
'Liabilities' item 3. 
2. Credit institutions within the meaning of this 
Article shall include all undertakings which are 
considered to be credit institutions under Directive 
77/780/EEC, as well as domestic and foreign central 
banks, international organizations with a banking 
character and all private and public undertakings which 
have their registered offices outside the European 
Community and which satisfy the definition in Article 1 
of Directive 77/780/EEC. 
Article 20 
Liabilities: Item 2 
Amounts owed to customers other than credit 
institutions 
1. This item shall comprise amounts, irrespective of 
their particular designation, owed to undertakings which 
are not credit institutions within the meaning .of 
Article 19. The only exception shall be commitments 
represented by debt securities evidenced in some other 
form, which shall be shown under 'Liabilities' item 3. 
2. Only deposits satisfying the conditions laid down 
in law by the Member State concerned shall be treated as 
savings deposits. 
Article 21 
Liabilities: Item 3 
Debts represented by certificates 
1. This item shall include both debt securities and 
commitments for which negotiable certificates have been 
issued, notably certificates of deposit, 'bons de caisse' 
and commitments from own acceptances and promissory 
notes. 
2. Only commitments in respect of which the credit 
institution is the first party liable ('drawee') shall be 
treated as commitments from own acceptances. 
NoC 130/8 Official Journal of the European Communities 1. 6. 81 
3. Savings deposits, even if savings books or similar 
certificates are issued in respect of them, savings bonds 
and other registered debt securities shall not be included 
in this item but under 'Liabilities' item 2. 
Article 22 
Liabilities: Item 8 
Subordinated liabilities 
Where it has been agreed that, in the event of winding up 
or of bankruptcy, liabilities, whether or not represented 
by certificates, are to be repaid only after the claims of all 
other creditors have been met, the liabilities in question 
shall be shown under 'Liabilities' item 8. 
Article 23 
Liabilities: Item 9 
Subscribed capital 
This item shall comprise all amounts, irrespective of their 
particular designation, which, in accordance with the 
legal structure of the credit institution, are regarded 
under the national law of the Member State concerned as 
equity capital subscribed by the shareholders or other 
proprietors. 
Article 24 
Liabilities: Item 11 
Reserves 
This item shall comprise all the types of reserves listed in 
Article 9 of Directive 78/660/EEC under liabilities A (III) 
and (IV), as defined therein. Member States may also 
require other types of reserves to be shown where this is 
necessary in relation to credit institutions having a legal 
structure not covered by Directive 78/660/EEC. 
These reserves shall be shown separately, as sub-items to 
'Liabilities' item 11, in the balance sheets of the credit 
institutions concerned. 
Article 25 
Item 1 below the line 
Contingent liabilities 
Endorsement liabilities arising from rediscounted bills 
shall be shown under (a) only if national law does not 
require otherwise. All personal guarantee obligations incurred for the 
account of third parties, particularly in respect of sureties 
and irrevocable letters of credit, shall be entered 
under (b). 
Assets which the credit institution drawing up the 
balance sheet has pledged as security for liabilities of 
third parties shall be shown under (c); assets which the 
credit institution drawing up the balance sheet has 
pledged as security for its own liabilities shall be shown 
in the notes on the accounts. 
Article 26 
Item 2 below the line 
Commitments arising from forward transactions 
This item shall comprise all liabilities — broken down by 
obligations to sell and to purchase - which exist on the 
balance sheet date and which the credit institution 
drawing up the balance sheet has incurred by way of 
forward transactions in foreign currencies, precious 
metals, securities, certificates of deposit or goods. 
Article 27 
Item 3 below the line 
Commitments arising from sale and repurchase 
transactions 
This item shall be restricted to contingent liabilities 
which the credit institution drawing up the balance sheet 
has incurred by way of optional sale and repurchase 
agreements within the meaning of Article 10 (3). 
SECTION 5 
Layout of the profit and loss account 
Article 28 
For the presentation of the profit and loss account, 
Member States shall prescribe one or both of the layouts 
contained in Articles 29 and 30. If a Member State 
prescribes both layouts it may allow credit institutions to 
choose between them. 
Article 29 
Vertical layout 
1. Interest receivable, including that derived from 
fixed-interest securities. 
1. 6. 81 Official Journal of the 
2. (a) Income from shares and other variable-yield 
securities; 
(b) Income from participating interests; 
(c) Income from shares in affiliated undertakings. 
3. Commissions receivable. 
4. Interest payable. 
5. Commissions payable. 
6. Other operating income. 
7. Staff costs: 
(a) wages and salaries; 
(b) social security costs, with a separate indication 
of those relating to pensions. 
8. Charges for value adjustments in respect of loans 
and advances to credit institutions and customers 
and provisions for guarantees in credit transactions 
with credit institutions and customers. Income from 
the writing-up of loans and advances to credit 
institutions and customers and from the 
writing-back of provisions for guarantees in credit 
transactions, with credit institutions and customers. 
9. Charges for value adjustments in respect of 
securities, participating interests and shares in 
affiliated undertakings/Income from value 
adjustments in respect of securities, participating 
interests and shares in affiliated undertakings. 
10. Value adjustments in respect of 'Assets' items 9 and 
10. 
11. Other operating charges. 
12. Tax on profit or loss on ordinary activities. 
13. Profit or loss on ordinary activities after tax. 
14. Extraordinary income. 
15. Extraordinary charges. 
16. Extraordinary profit or loss. 
17. Tax on extraordinary profit or loss. 
18. Other taxes not shown under the above items. 
19. Profit or loss for the financial year. >ean Communities No C 130/9 
Article 30 
Horizontal layout 
A. Charges 
1. Interest payable. 
2. Commissions payable. 
3. Staff costs: 
(a) wages and salaries; 
(b) social security costs, with a separate 
indication of those relating to pensions. 
4. Charges for value adjustments in respect of 
loans and advances to credit institutions and 
customers and provisions for guarantees in 
credit transactions with credit institutions and 
customers. 
5. Charges for value adjustments in respect of 
securities, participating interests, and shares in 
affiliated undertakings. 
6. Value adjustments in respect of 'Assets' items 9 
and 10. 
7. Other operating charges. 
8. Tax on profit or loss on ordinary activities. 
9. Extraordinary charges. 
10. Tax on extraordinary profit or loss. 
11. Other taxes not shown under the above items. 
12. Profit for the financial year. 
B. Income 
1. Interest receivable, including that derived from 
fixed-interest securities. 
2. (a) Income from shares and other variable-yield 
securities; 
(b) Income from participating interests; 
(c) Income from shares in affiliated 
undertakings. 
3. Commissions receivable. 
4. Income from the writing up of loans and 
advances to credit institutions and customers and 
from the writing-back of provisions for 
guarantees in credit transactions with credit 
institutions and customers. 
No C 130/10 Official Journal of the European Communities 1. 6. 81 
5. Income from value adjustments in respect of 
securities, participating interests, and shares in 
affiliated undertakings. 
6. Other operating income. 
7. Profit or loss on ordinary activities after tax. 
8. Extraordinary income. 
9. Loss for the financial year. 
SECTION 6 
Special provisions relating to certain items in the profit 
and loss account 
Article 31 
Article 29, items 1 and 4 (vertical layout) and Article 30, 
items A. 1 and B. 1 (horizontal layout) 
Interest receivable and interest payable 
1. Interest receivable shall include all income arising 
from the assets shown in 'Assets', items 1 to 7, of the 
balance sheet regardless of the form in which such 
income is calculated. Interest receivable shall also include 
income arising, through the spreading of the discount on 
a time basis, in the case of assets acquired below par 
value. 
2. Interest payable shall include all charges for 
liabilities shown under 'Liabilities', items 1 to 3, 
regardless of the form in which such charges are 
calculated. Interest payable shall also include charges 
arising, through the spreading of the premium on a time 
basis, in the case of liabilities entered into above par 
value. 
3. Fees and commissions computed on a time basis 
and by reference to the amount of the claim or liability 
shall also be regarded as interest. 
Article 32 
Article 29, item 2 (vertical layout) and Article 30, item 
B. 2 (horizontal layout) 
Income from shares and other variable-yield securities, 
from participating interests, and from shares in affiliated 
undertakings 
This item shall comprise all dividends and other income 
from variable-yield securities, from participating 
interests and from shares in affiliated undertakings. Income from shares in investment companies shall also 
be included under this item. 
Article 33 
Article 29, items 3 and 5 (vertical layout) and Article 30, 
items A. 2 and B. 3 (horizontal layout). 
Commissions receivable and commissions payable 
Commissions receivable shall include income in respect 
of all services supplied for the account of third parties, 
and commissions payable shall include charges for the 
use of services of third parties, notably: 
— commissions for guarantees, loans administration for 
the account of other lenders and securities 
transactions for the account of third parties; 
— commissions and other charges and income in 
respect of payment transactions, account 
administration charges and commissions for the safe 
custody and administration of securities; 
— commissions for foreign currency transactions and 
for the sale and purchase of coin and precious metals 
for the account of third parties; 
— commissions earned for brokerage services in 
connection with loans, savings or insurance 
contracts. 
Article 34 
Article 29, item 8 (vertical layout) and Article 30, items 
A. 4 and B. 4 (horizontal layout) 
and 
income from the writing-up of loans and advances to 
credit institutions and customers and from the 
writing-back of provisions for guarantees in credit 
transactions with credit institutions and customers. 
1. These items shall include charges for value 
adjustments in respect of loans and advances and 
provisions for guarantees to be shown under 'Assets', 
items 3 and 5, and below the line, or, as appropriate, 
income from the recovery of written-off loans and 
advances and from the writing-back of earlier value 
adjustments in credit transactions and provisions for 
guarantees. 
2. The charges and income covered by these items 
may be set off one against the other, so that only a net 
item (income or charge) is shown. Charges for value adjustments in respect of loans and 
advances to credit institutions and customers and 
provisions for guarantees in credit transactions with 
credit institutions and customers 
1. 6. 81 Official Journal of the European Communities No C 130/11 
Article 35 
Article 29, item 9 (vertical layout) and Article 30, items 
A. 5 and B. 5 (horizontal layout) 
Charges for value adjustments in respect of securities, 
participating interests and shares in affiliated 
undertakings 
and 
income from value adjustments in respect of securities, 
participating interests and shares in affiliated 
undertakings. 
1. These items shall include, in respect of the assets to 
be shown in 'Assets', items 6 and 8, all the charges for 
value adjustments and all the income from value 
adjustments in respect of securities, participating 
interests, and shares in affiliated undertakings. 
2. The charges and income covered by these items 
may be set off one against the other so that only a net 
item (income or charge) is shown. 
SECTION 7 
Valuation rules 
Article 36 
1. 'Assets', item 9, shall always be valued as fixed 
assets. The assets included in other balance sheet items 
shall be valued as fixed assets where they are intended for 
use on a continuing basis in the normal course of the 
credit institution's activities. 
2. Where reference is made to 'Financial fixed assets' 
in Section 7 of Directive 78/660/EEC, this term shall in 
the case of credit institutions be taken to mean 
participating interests, shares in affiliated undertakings 
and securities intended for use on a continuing basis in 
the normal course of the credit institution's activities. 
Article 37 
Article 39 of Directive 78/660/EEC shall be applied in 
the valuation of credit institutions' loans and advances 
subject to the following provisions: 
1. Loans and advances to credit institutions and 
customers ('Assets', items 3 and 5), may be shown at 
a lower value than permitted under Article 39 (1) (b) 
and (c) of Directive 78/660/EEC, where this is 
necessary in view of the prudence dictated by the 
particular risks attaching to banking business. 
Nevertheless, the difference between this lower value and that which would result from the application of 
the provisions mentioned above must not be greater 
than 5%. 
2. The valuations thus established may be maintained 
until the credit institution drawing up the balance 
sheet wishes to write up the items in order to avoid 
undue fluctuations in value adjustment charges. 
Article 38 
1. The conversion.into national currency of foreign 
currency assets and liabilities and unmatured forward 
exchange contracts which do not have to be shown in the 
balance sheet and the recording of the results of foreign 
exchange transactions shall be carried out in accordance 
with the provisions of paragraphs 2 to 4. 
2. Assets and liabilities denominated in foreign 
currencies and unmatured forward exchange contracts 
shall be converted to national currencies at the spot rate 
ruling at the balance sheet date. However, the Member 
States may stipulate that in converting unmatured 
forward exchange contracts the forward rate ruling at 
the balance sheet date shall be used. 
3. The difference between the book value of assets 
and liabilities denominated in foreign currencies and of 
unmatured forward exchange contracts, and the amount 
resulting from conversion in accordance with paragraph 
2 shall be included in the profit and loss account. 
However, the Member States may stipulate that, where 
forward exchange contracts are not covered by specific 
foreign exchange swaps or by assets or liabilities 
denominated in foreign currencies, any conversion gains 
shall not be included in the profit and loss account. 
4. The charges and income resulting from specially 
covered forward exchange contracts shall be included in 
the profit and loss account pro rata temporis. 
SECTION 8 
Contents of the notes on the accounts 
Article 39 
1. Article 43 of Directive 78/660/EEC shall apply 
subject to the following provisions. 
2. In place of the information required under Article 
43 (1) (6) of Directive 78/660/EEC, credit institutions 
shall in the notes on the accounts provide an analysis of 
fixed term claims and liabilities in respect of credit 
institutions and customers other than credit institutions 
'Assets', items 3 (b) (bb) 5 (b) and 7 and 'Liabilities', 
NoC 130/12 Official Journal of the European Communities 1. 6. 81 
items 1 (b) (bb) 2 (b) and (c) 3 (b) and 8) in accordance 
with the following periods: 
— up to and including one year; 
— more than one year but less than five years; 
— five years and over. 
In addition, credit institutions shall indicate, in respect of 
the balance sheet items specified above and also in 
respect of 'Assets', item 6, debt securities held in 
portfolio, and 'Liabilities', item 3 (a), debt securities 
issued, what proportion of assets and liabilities with an 
original maturity of five years or more will become due 
within one year of the balance sheet date. 
The Member States may stipulate that this information 
be given in the balance sheet. 
Lastly, credit institutions shall provide information on 
the assets which have been pledged as security for their 
own liabilities (including contingent liabilities); the 
information should be in sufficient detail to indicate, for 
each item under 'Liabilities' and for each item below the 
line, the total amount of the assets pledged as security. 
3. Where credit institutions have to provide 
information within the meaning of Article 43 (1) (7) of 
Directive 78/660/EEC in the items below the line, such 
information need not be repeated in the notes on the 
accounts. 
4. In place of the information required under 
Article 43 (1) (8) of Directive 78/660/EEC, credit 
institutions shall indicate in the notes the proportion of 
their operating income (items 1 to 3 and 6 of the profit 
and loss account) which arises from domestic and foreign 
markets respectively. 
5. By way of derogation from Article 43 (1) (13) of 
Directive 78/660/EEC, credit institutions need indicate 
only the amounts of advances and credits granted to the 
members of their administrative, managerial and 
supervisory bodies, and the commitments entered into on 
their behalf by way of guarantees of any kind. 
Article 40 
1. The information required under Article 15 (3) of 
Directive 78/660/EEC shall apply to fixed assets as 
defined in Article 36 of this Directive. 
2. The Member States shall require credit institutions 
to give in addition the following information in the notes 
on the accounts: 
(a) a breakdown of the securities included in 'Assets', 
items 6,7 and 8 into listed and unlisted securities and into securities which, pursuant to Article 36 of this 
Directive, were or were not valued as fixed assets; 
(b) information on the value of leasing transactions 
apportioned between the relevant balance sheet 
items; 
(c) the book values, separately, of land and buildings, 
included in 'Assets', item 10, occupied by the credit 
institution and land and buildings held for resale; 
(d) a breakdown of 'Assets', item 13, 'Liabilities', 
item 4, charges items 11 and 15 in the vertical layout 
or A.7 and 9 in the horizontal layout and income 
items 6 and 14 in the vertical layout or B.6 and 8 in 
the horizontal layout into their main component 
amounts, where such amounts are important for the 
purpose of assessing the annual accounts, as well as 
explanations of their nature and amount; 
(e) information on the amounts of interest which the 
credit institutions have received for subordinated 
assets in the year under review or have expended for 
surbordinated liabilities. 
SECTION 9 
Certain provisions not applicable 
Article 41 
Articles 11, 12, 27, 44, 45 (2), second subparagraph, 47 
(2) and (3) and 51 (2) and (3) of Directive 78/660/EEC 
shall not apply to credit institutions. 
SECTION 10 
Publication 
Article 42 
1. The properly authorized annual accounts of credit 
institutions, together with the annual report and the 
opinion of the person responsible for auditing the 
accounts shall be published in the manner required by 
the legislation in each Member State in accordance with 
Article 3 of Council Directive 68/151/EEC (l). 
(^ OJ No L 65, 14. 3. 1968, p. 8. 
1. 6. 81 Official Journal of the European Communities NoC 130/13 
However, for credit institutions not having one of the 
legal forms specified in Article 1 (1) of Directive 
78/660/EEC and not subject to the national legislation 
concerning publication referred to above, Member States 
shall lay down appropriate requirements which will at 
least make the abovementioned documents available to 
the public, on demand and without charge, at the 
registered office of the credit institution. 
2. The annual accounts of a credit institution shall be 
published in all Community countries where the credit 
institution has branches as defined by Article 1, third 
indent of Directive 77/780/EEC, in the official language 
of each country concerned. 
SECTION 11 
Final provisions 
Article 43 
1. The Contact Committee established in accordance 
with Article 52 of Directive 78/660/EEC shall, when 
constituted appropriately, also have the following 
functions: 
(a) to facilitate, without prejudice to the provisions of 
Articles 169 and 170 of the Treaty, harmonized application of this Directive through regular 
meetings dealing in particular with practical 
problems arising in connection with its application; 
(b) to advise the Commission, if necessary, on additions 
or amendments to this Directive. 
Article 44 
1. The Member States shall bring into force the laws, 
regulations and administrative provisions necessary for 
them to comply with this Directive by They shall 
forthwith inform the Commission thereof. 
2. The Member States may stipulate that the 
provisions referred to in paragraph 1 shall not apply 
until two years after the end of the period provided for in 
that paragraph. 
3. The Member States shall ensure that they 
communicate to the Commission the texts of the main 
provisions of national law which they adopt in the field 
covered by this Directive. 
Article 45 
This Directive is addressed to the Member States.