3. 7.91 Official Journal of the European Communities No C 172/3 
II 
(Preparatory Acts) 
COMMISSION 
Proposal for a Council Directive amending Directive 89/299/EEC on the own funds of credit 
institutions 
(91/C 172/03) 
COM(91) 188 final — SYN 344 
(Submitted by the Commission on 13 March 1991) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular the first and 
third sentences of Article 57 (2) thereof, 
Having regard to Council Directive 89/299/EEC of 17 
April 1989 on the own funds of credit institutions ('), in 
which the eligible elements of the own funds of credit 
institutions and the way they are calculated are defined, 
Having regard to the proposal from the Commission, 
In cooperation with the European Parliament, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas Article 4 (1) of Directive 89/299/EEC permits 
joint and several commitments of borrowers in the case 
of credit institutions organized as cooperative societies 
or funds to be treated as Article 2 (1) (7) own funds 
items of the said Directive; whereas no provision of the 
said Directive deals with the treatment of such 
commitments in cases where a credit institution 
organized as a cooperative society or a fund is trans­
formed into a public limited company; 
Whereas the Danish government has expressed a strong 
interest in having their few mortgage credit institutions 
organized as cooperatives or funds transformed into 
public limited companies; whereas in order to facilitate 
the transformation or to make possible a temporary 
derogation allowing them to include part of their joint and several commitments as own funds is required; 
whereas this temporary derogation should not adversely 
distort competition between credit institutions; 
Whereas in adopting Directive 89/299/EEC the Council 
has reserved for itself the implementing powers to make 
technical adjustments; whereas the Commission 
undertook to make a proposal for a definitive solution to 
this problem which takes account of the special charac­
teristics of the banking sector and which permits the 
introduction of a more suitable procedure for the 
implementation of the Directive; 
Whereas implementating powers of the same nature as 
those the Council reserved for itself in Directive 89/299 
of 17 April were granted to the Commission in the 
Second Banking Directive 89/646 of 15 December 1989; 
Whereas taking into account the specific characteristics 
of the banking sector it is appropriate to give the 
Committee provided for in Article 22 of the Second 
Banking Directive the role of assisting the Commission 
in exercising the responsibilities granted to it according 
to the rules of procedure laid down in Article 2, 
procedure III, variant (a), of the Council Decision 
87/373/EEC of 13 July 1987 laying down the procedure 
for the exercise of implementing powers conferred on 
the Commission (2), 
HAS ADOPTED THIS DIRECTIVE: 
Article 1 
After Article 4 of Directive 89/299/EEC a new Article 
4a is inserted: 
(') OJ No L 124, 5. 5. 1989, p. 16. O OJ No L 197, 18. 7. 1987, p. 33. 
No C 172/4 Official Journal of the European Communities 3. 7. 91 
'Article 4a 
Denmark may allow its mortgage credit institutions, 
organized as cooperative societies or funds before 1 
January 1990 and transformed into public limited 
companies, to continue to include joint and several 
commitments of borrowers as mentioned in Article 4 
(1) in their own funds subject to the following limits: 
(a) the "basis for calculation" of the part of joint 
and several commitments of borrowers is the 
total of items 1 plus 2 minus 9, 10 and 11 in 
Article 2 (1); 
(b) the "basis for calculation" on 1 January 1991 or, 
if transformed at a later date, on the date of 
transformation is the "maximum basis for calcu­
lation". The "basis of calculation" can never 
exceed the "maximum basis for calculation"; tations to be made to this Directive in the following 
areas shall be adopted in accordance with the 
procedure laid down in paragraph 2: 
clarification of the definitions to ensure uniform 
application of this Directive throughout the 
Community, 
clarification of the definitions in order to take 
account in the implementation of this Directive of 
developments on financial markets, 
the alignment of terminology on and the framing 
of definitions in accordance with subsequent acts 
on credit institutions and related matters. 
(c) the "maximum basis for calculation" shall from 1 
January 1997 be reduced by half of the proceeds 
from any issue of new capital, as defined in 
Article 2(1) item 1, made after that date, and 
(d) the maximum amount of joint and several 
commitments of borrowers to be included as own 
funds must never exceed: 2. The Commission shall be assisted by a 
committee composed of representatives of the 
Member States and chaired by a representative of the 
Commission as provided in Article 22 (2) first 
paragraph of the Second Banking Directive 89/646 
of 30 December 1989. 
50% 
45% 
40% 
35% 
30% 
20% 
10% n 1991 and 1992, 
n 1993 and 1994, 
n 1995 and 1996, 
n 1997, 
n 1998, 
n 1999, 
n 2000 and 
— 0 % after 1 January 2001 
of the "basis for calculation".' 
Article 2 
Article 8 of Directive 89/299/EEC is hereby replaced by 
the following: 
Article 8 
1. Without prejudice to the report referred to in 
Article 2 (2), second subparagraph, technical adap-The Commission representative shall submit to the 
committee a draft of the measures to be taken. The 
committee shall deliver its opinion on the draft within 
a time limit which the chairman may lay down 
according to the urgency of the matter. The opinion 
shall be delivered by the majority laid down in Article 
148 (2) of the EEC Treaty in the case of decisions 
which the Council is required to adopt on a proposal 
from the Commission. The votes of the represen­
tatives of the Member States in the committee shall 
be weighted in the manner set out in that Article. 
The chairman shall not vote. 
The Commission shall adopt the measures envisaged 
if they are in accordance with the opinion of the 
committee. 
If the measures envisaged are not in accordance with 
the opinion of the committee, or if no opinion is 
delivered, the Commission shall, without delay, 
submit to the Council a proposal concerning the 
measures to be taken. The Council shall act by a 
qualified majority. 
If the Council does not act within three months of 
the referral to it, the proposed measures shall be 
adopted by the Commission.' 
3. 7. 91 Official Journal of the European Communities No C 172/5 
Article 3 
1. Member States shall bring into force the laws, 
regulations and administrative provisions necessary to 
comply with this Directive not later than 1 January 1993. 
2. When Member States adopt these measures, they 
shall contain a reference to this Directive or shall be 
accompanied by such reference on the occasion of their official publication. The methods of making such a 
reference shall be laid down by the Member States. 
3. Member States shall communicate to the 
Commission the text of provisions of national law which 
they adopt in the field governed by this Directive. 
Article 4 
This Directive is addressed to the Member States.