ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(74)2100
Vol.1974/0347

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(74)2100final
Brussels,10December1974
Proposalfora
DECISION OFTHECOUNCIL
settingupaCommitteeforContact "betweentheauthorities
oftheMemberStatesresponsibleforthesupervision
ofcreditinstitutions
(submittedtotheCouncilbytheCommission)
C0M(74)2100final

EXPLANATORY MIORANIUM
Recent events inthetanking industry ,andespecially mtheforeign
exchange andeurocurrency markets ,have made progress inthecoordination of
"bank control saidregulation very urgent .TheFinance Ministers ,attheir
meeting of18th November ,laid stress onthis point .
TheCommission has just proposed totheCouncil adirective onthe
coordination oftheessential elements ofthesystem ofregulation ofcrddit
institutions .This directive isnomere than anoutline ofthe 'basic
features ofcoordination inthis field andwill have to "becompleted ,in
aseries ofsubsequent stages ,bymore detailed rules .Howe -er,itmust
beexpected that thebasic text which hasnowbeen proposed will notbe
adopted forseveral months ,inview oftheprocedures involved .
Under these circumstances ,itistheCommission 'sview that a
meaningful step should betaken without delay .Forthis reason itproposes
that there should besetupimmediately ,alongside theCommiL^ion ,aContact
Committee oftheauthorities responsible ,within each Memb-.r 3uate ,forthe
control ofcredit institutions .Thework ofthis Committee will beorga&ized
insuch away astoensure close andregular cooperation with themonetary
authorities andespecially with E5CCT !.Itisalso important that the
powers oftheCommission deriving from theTreaty arenotprejudiced .
i
Theproposed decision should make itpossible tocompare without
delay thepractices ofthevarious authorities andtobegin discussion
between these authorities andtheCommission with aview todeveloping
urgently appropriate measures toimprove thefinancial security ofcredit
institutions (liquidity ,solvency ),andinparticular ofthose active on
the euro-markets .

Proposal fora
DECISION OFTHE COUNCIL
setting upaCommittee forContact "between theauthorities ofthe
Member States responsible forthesupervision ofcredit ir^iv '/utions
•mmm --tja» ;i** ■m■!■
I
THECOUNCIL OPTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community -
Having regard totheproposal from theCommission of
foraCouncil Directive onthecoordination oflaws ,regulations ,and
administrative provisions governing thecommencement andcarrying onof
business bycredit institutions "j
Whereas thepresent situation ontheeuro-markets andtherisks towhich
credit institutions operating onthese markets oanbeexposed make it
necessary toteJke immediate measures inorder tosafeguard thefinancial
security ofthese institutions ;
Whereas theCommission proposal provides inArticle f1foraContact
Committee ofauthorities responsible forthesupervision ofcredit insti­
tutions tobeattached totheCommission ;
Whereas thecooperation oftheauthorities within that Committee ,andin
particular their common attitude towards regulation ofliquid !tyand
solvency ofcredit institutions asindicated intheCommission proposal ,
would help tosafeguard thefinancial security ofcredit institutions ;
Whereas thesaid Committee should forthese reasons besetupwithout
delay ;
HAS DECIDED ASFOLLOWS 8

Article 1
1. There shall "beforthwith attached totheCommission aContact
Committee ofauthorities responsible forthesupervision ofcredit institu­
tions .Itshall meet forthefirst time notlater than 15January 1975 .
2. TheContact Committee shall becomposed ofamaximum oftworepresen­
tatives ofthesupervisory authorities ofeach Member State ,together with
tworepresentatives oftheCommission .These representatives maybeaccom­
panied from time totime ,subject toprior agreement oftheCommittee ,by
one ormore advisors . Secretarial services for the Committee shall be
provided bytheCommission .
3. Thefirst meeting oftheCommittee shall becalled bytheCommission
under thechairmanship ofoneofitsrepresentatives .TheCommittee shall
atthat meeting establish itsrules ofprocedure ,which shall inparticular
contain provisions concerning itsrelations with theEuropean Fund for
Monetary Cooperation -,andshall elect itsfirst Chairman anddeputy Chairman .
4. Theoffices ofChairman anddeputy Chairman shall befilled inrota­
tion ,foroneyear atatime ,bymembers representing thesupervisory authori­
ties ofone and the same Member State .
5. TheCommittee shall beconvened byitsChairman ,either onhisown
initiative opattherequest ofone ofitsmembers .
6. Allproceedings oftheCommittee shall becovered bytheobligation
ofprofessional secrecy .Such proceedings maynotbemade public inany
waybyexpress decision oftheCommittee .
Article 2
1. TheCommittee shall examine asamatter ofurgency measures toguaran –
teethefinancial stability ofcredit institutions ,andparticularly ofthose
operating ontheeuro-markets .Thepurpose ofsuch measures shall beto
regulate theliquidity andsolvency ofcredit institutions andinparticular
tolimit therisks arising from foreign exchange operations .

-3-
2. TheCommittee shall examine asamatter ofpriority theessential
elements ofacoordinated system ofregulation andcontrol ofthesolvency
andliquidity ofcredit' institutions .Itshall forward itsopinion tothe
Commission within three months ofitsfirst meeting ,sothat theCommission
may "beable tosubmit proposals totheCouncil assoon aspossible .

Supplementary Declaration concerning liaison between theContact
Committee ,FECOM andnational monetary authorities .
(to "bewritten into theminutes oftheCommission )
Itisimportant that theContact Committee should operate in
liaison with FECOM ontheonehand andnational monetary authorities
ontheother .Therules ofprocedure oftheCommittee ,which will "be
decided atitsfirst meeting ,will ensure that close andregular
cooperation isestablished between these "bodies andinparticular with
FECOM .