.v^çÈH 
?38=? COMMISSION OF THE EUROPEAN COMMUNITIES 
COM (89) 208 final - SYN 53 
: >4à Brussels,18 April 1989 
REEXAMINED PROPOSAL FOR 
A COUNCIL DIRECTIVE 
ON THE OWN FUNDS OF CREDIT INSTITUTIONS 
(presented by the Commission pursuant to 
Article 149(2)(d) of the EEC Treaty) 
- 1 -{S-to 8 
REEXAMINED PROPOSAL 
FOR A COUNCIL DIRECTIVE 
ON THE OWN FUNDS Of CREDIT INSTITUTIONS 
Explanatory Memorandum 
1. The or I g I na I proposa I for a Counc it D » rec t i ve on the Own Funds of 
Credit Institutions was submitted by the Commission to the Council 
on 18 September 19861. 
2. The Economic and Social Committee delivered its opinion2 on 14 May 
1987 and the European Parliament delivered its opinion3 on 9 July 
1987. 
3. Pursuant to Article 149(3) of the Treaty, the Commission submitted 
an amended proposal4 which largely took account of the proposed 
amendments. 
4. On 21 December 1988 the Council unanimously agreed on a common 
position5 on which the Council has delivered its reasons6 and the 
Commission its observations7. 
5. The European Parliament had its second reading on 15 March 1989 
under the cooperation procedure and voted in favour of two 
amendements8. 
T ÔJ Nd C 243, 27.9.1986, p.4 
2 OJ N° C 180, 8.7.1987, p. 51 
3 OJ N° C 246, 14.9.1987, p. 72 
4 OJ N° C 32, 5.2.1988, p. 2 
5 The Council Doc. 4020/89 of 6.1.1989 
6 The Council Doc. 4020/89 Add. 1 of 6.1.1989 and Cor. 1(f) of 
13.1.1989 and Cor. 2 of 17.1.1989 
7 Sec(88) 2046 SYN 53 of 3.1.1989 
8 EP 130.923 
I 
6. The two a"- ^ents adopted by the European Parliament concern the 
question of comito logy and they propose to use the management 
committee, 2B procedure of the Council's decision of 13 July 
19879. The Parliament vigorously rejected Art. 8 of the Council's 
common position which reserved to the Council, on a provisional 
basis, the implementing powers. 
7. The Commission thought it appropriate to propose in all the banking 
directives (own funds, second banking directive, solvency ratio) 
the procedure of regulatory committee, procedure 3Aw of the 
Council's decision of 13 July 1987. This procedure gives the 
Commission all the powers it needs and it is the only adequate 
procedure taking into account the nature of the measures which will 
have to be taken. In the banking field, the implementing powers 
will not be used for a day-to-day management, as it is the case in 
other sectors (e.g. agriculture) where the management committee 
procedure is appropriate. 
8. This is the reason why the Commission, although it welcomes the 
decision of the European Parliament to reject the position of the 
Council on Comito logy, prefers to persist in its reexamined 
proposal and vigorously defend the regulatory committee version 3A. 
S ÔJ N- L 1Ô7 of 18.7.1987, p. 33 
REEXAMINED PROPOSAL 
FOR A COUNCIL DIRECTIVE 
ON THE OWN FUNDS OF CREDIT INSTITUTIONS 
Common position of the Council Reexamined proposai of the Commission 
Recitals 1 to 16 unchanged 
17th Recital 17th Recital 
Whereas it will probably be necessary to 
make certain technical and 
terminological adjustments to the 
Directive to take account of the rapid 
development of financial markets; 
whereas pending submission by the 
Commission of a proposal which takes 
account of the special characteristics 
of the banking sector and which permits 
the introduction of a more suitable 
procedure for the implementation of this 
Directive, the Council reserves the 
right to take such measures, Whereas it will probably be necessary to 
make certain technical and terminological 
adjustments to the Directive to take 
account of the rapid development of 
financial markets; whereas the Commission 
will make such adjustments, where 
necessary, being assisted in this task by 
a committee of representatives of the 
Member States chaired by the 
representative of the Commission; the 
appropriate measures will be adopted in 
accordance with procedure III, Variant 
(a), as laid down in Article 2 of Council 
Decision 87/373/EEC of 13 July 19871. 
Remaining Recitals unchanged 
Articles 1 to 7 unchanged 
Article 8 
Without prejudice to the report referred 
to in Article 2(2), second subparagraph, 
technical adaptations deemed to be 
necessary to this directive to: Article 8 
1. Without prejudice to the report 
referred to in Article 2(2), second 
subparagraph, technical adaptations 
deemed to be necessary to this directive 
to: 
OJ N* L 197, 18.7.1987, p. 33 
Common posi t ion the Counc iI Reexamined proposal of the Commission 
clarify the definitions to ensure 
uniform application of the said 
directive throughout the Community; clarify the definitions to ensure 
uniform application of the said 
directive throughout the Community; 
clarify the definitions to take 
account, in implementing the said 
directive, of developments on the 
financial markets; clarify the definitions to take 
account, in implementing the said 
directive, of developments on the 
financial markets; 
bring the terminology and wording of 
the definitions into line with that 
of subsequent acts concerning credit 
institutions and related areas; bring the terminology and wording of 
the definitions into line with that 
of subsequent acts concerning credit 
institutions and related areas; 
shall be adopted by the Council acting 
by a qualified majority on a Commission 
proposa I. shall be adopted by the Commission in 
accordance with the procedure laid down 
in paragraph 2. 
2. The Commission shall be assisted by 
a committee 
representatives 
chaired by the composed 
of the Member of 
States 
representative of the 
and 
the 
Commission. 
The representative of the Commission 
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 Treaty in the case 
of decisions which the Council is 
f 
Common position of the Council Reexamined proposal of the Commission 
required to adopt on a proposal from the 
Commission. The votes of the 
representatives of the Member States 
within 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 relating 
to the measures to be taken. The Council 
shall act by a qualified majority. 
If, on the expiracy of a period to be 
laid down in each act to be adopted by 
the Council under this paragraph but 
which may in no case exceed three months 
from the date of referral to the Council, 
the Council has not acted, the proposed 
measures she 11 be adopted by the 
Commission. 

Commission of the European Communities 
COM(89) 208 final 
Re-examined proposal for a 
COUNCIL DIRECTIVE 
on the own funds of credit institutions 
(presented by the Commission pursuant to Article 149(2)(d) of the EEC 
Treaty) 
18.4.1989 
Office for Official Publications of the European Communities 
L - 2985 Luxembourg 
Series: DOCUMENTS 
1989 — 6 pp. — Format: 21.0 * 29.7 cm 
EN 
ISSN 0254-1475 
ISBN 92-77-48694-5 
Catalogue number: CB-CO-89-160-EN-C 
ISSN 0254-1475 
COM(89) 208 final 
DOCUMENTS 
Re-examined proposal for a 
COUNCIL DIRECTIVE 
on the own funds of credit institutions 
(presented by the Commission pursuant to 
Article 149(2)(d) of the EEC Treaty) 
10 
Catalogue number: CB-CO-89-160-EN-C 
ISBN 92-77-48694-5 18.4.1989 
€ 
COMMISSION OF THE EUROPEAN COMMUNITIES