REEXAMINED PROPOSAL FOR A COUNCIL DIRECTIVE ON THE OWN FUNDS OF CREDIT INSTITUTIONS
Date: 1989-04-18
Institutions: European Commission
Subjects: approximation of laws, borrowing, credit institution, industrial capital

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COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

COM  (89)  208 

final  -  SYN 53 

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 

Whereas  it will  probably  be necessary  to 

make 

certain 

technical 

and 

make certain  technical  and terminological 

terminological 

adjustments 

to 

the 

adjustments  to  the  Directive  to  take 

Directive  to  take  account  of  the  rapid 

account  of  the  rapid  development  of 

development 

of 

financial 

markets; 

financial  markets; whereas  the Commission 

whereas  pending  submission  by  the 

will 

make 

such 

adjustments,  where 

Commission  of  a  proposal  which  takes 

necessary, being assisted  in this task by 

account  of  the  special  characteristics 

a  committee  of  representatives  of  the 

of  the  banking  sector  and  which  permits 

the  introduction  of  a  more  suitable 

Member 

the 
representative  of  the  Commission;  the 

chaired 

States 

by 

procedure  for  the  implementation of  this 

appropriate  measures  will  be  adopted  in 

Directive,  the  Council  reserves  the 

accordance  with  procedure  III,  Variant 

right  to take such measures, 

(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 

Article 8 

1.  Without  prejudice  to  the  report 

Without  prejudice to the report  referred 

referred  to  in  Article  2(2),  second 

to  in Article  2(2), second  subparagraph, 

subparagraph, 

technical 

adaptations 

technical  adaptations  deemed  to  be 

deemed  to be  necessary  to  this  directive 

necessary  to this directive to: 

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 

clarify  the  definitions  to  ensure 

uniform  application  of  the  said 

uniform  application  of  the  said 

directive  throughout  the  Community; 

directive throughout  the Community; 

clarify  the  definitions  to  take 

clarify  the  definitions  to  take 

account,  in  implementing  the  said 

account,  in  implementing  the  said 

directive,  of  developments  on  the 

directive,  of  developments  on  the 

financial markets; 

financial markets; 

bring  the terminology  and wording of 

bring  the terminology  and wording of 

the  definitions  into  line with  that 

the  definitions  into  line with  that 

of subsequent  acts concerning credit 

of subsequent  acts concerning credit 

institutions and  related areas; 

institutions and  related areas; 

shall  be  adopted  by  the  Council  acting 

shall  be  adopted  by  the  Commission  in 

by  a qualified  majority  on  a  Commission 

accordance  with  the  procedure  laid  down 

proposa I. 

in paragraph  2. 

2. 

a 

committee 

The  Commission  shall  be  assisted  by 
the 
and 
the 

representative  of 

of  the  Member 

composed 

States 

of 

representatives 

chaired  by  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 

COM(89)  208  final 

ISSN 0254-1475 

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 

€ 

COMMISSION OF THE EUROPEAN COMMUNITIES 

18.4.1989