Amended proposal for a COUNCIL DIRECTIVE ON DEPOSIT-GUARANTEE SCHEMES
Date: 1993-06-07
Institutions: European Commission
Subjects: bank deposit, banking, credit guarantee, credit institution, financial institution, management audit

COMMISSION OF THE EUROPEAN  COMMUNITIES 

C0M(93) 253  final-SYN415 

Brussels, 7  June  1993 

Amended proposal  for a 

COUNCIL DIRECTIVE 

ON DEPOSIT-GUARANTEE  SCHEMES 

(presented  by  the Commission pursuant  to Article  149(3) 
of  the EEC-Treaty) 

-  1 -

AMENDED PROPOSAL FOR A COUNCIL DIRECTIVE ON 

DEPOSIT-GUARANTEE  SCHEMES 

EXPLANATORY  MEMORANDUM 

I. Retnjpder çf prpçedure 

1. On  6  May  1992  the  Commission  adopted  a  proposal  for  a  Directive  on 

deposit-guarantee  schemes,1  which  was  sent  to  the  Council  by  letter 

dated  14 June. 

The  Council  immediately  forwarded  this  text  to  Parliament  and  to  the 

Economic  and  Social  Committee,  and  on  14  July  began  to  examine  the 

proposal. 

2. The  Economic  and  Social  Committee  unanimously  adopted  an  opinion  on  the 

Commission  proposal  at  its  300th  plenary  meeting  which  took  place  in 

Brussels on 22 October.2 

The  European  Parliament  adopted  the  legislative  resolution  embodying  the 

opinion  of  Parliament  on  the Commission  proposal  for  a Council  Directive 

at  its sitting of  10 March 1993. 

3. This amended  proposal  has been drafted  to take account  of  the outcome of 

the consultation of  these two  institutions. 

4. The  European  Parliament  and  the  Economic  and  Social  Committee  have 

welcomed  the  proposal  for  a  minimum  degree  of  harmonization  and 

recognized  the  justification  of  opting  for  branch  depositors  to  be 

guaranteed by  the home-country  scheme. 

1  OJ No C  163, 30.06.1992. 
2  0J No C 332, 16.12.1992. 

7 

-  2 -

II. 

Comments on  amendments 

The  European  Parliament  has  suggested  two  key  amendments  to  the  Directive, 

namely an  increase  in the minimum amount of  the guarantee  from ECU  15 000 to 

ECU 20 000  and  the  exemption  from  compulsory  membership  of  a  deposit-

guarantee  scheme of  authorized  institutions which  receive  deposits  from  the 

public  but  already  enjoy  protection  because  they  belong  to  a  scheme  which 

guarantees  the  institutions themselves  (and therefore  their  depositors). 

In several  Member  States, the  federative  body, where  it exists, belongs  to 

the national  guarantee  scheme;  in other  Member  States, this  is not  possible 

because  both  the  guarantee  scheme  and  the  network  itself  are  organized 

differently. 

Parliament  explains  its proposal  in  the  new  recital  which  is partly  taken 

over  in the amended  proposal;  this recalls  the efficiency  of  these  schemes 

and  observes  that  they  satisfy  the  Directive's  objectives  even  though  they 

"pursue a slightly different  protection goal". 

Comments on  individual  Articles 

Article 1 

With  greater  clarity  in  mind,  two  definitions  have  been  added  to 

paragraph 1>  these  two definitions  take  over,  unchanged,  the  ones  already 

used  in Article  1 of  the first banking Directive. 

The definition of  deposits has been  amended  to exclude  from  the  Directive's 

scope  bonds  of  a  special  nature  the  holders  of  which  already  enjoy 

protection because  these securities are  linked to property  guarantees, which 

gives  their  holder  a priority  right  to reimbursement  out of  the proceeds of 

the sale of  the mortgaged  property. 

This exclusion was also requested by  the Economic and Social  Committee. 

3 

3 -

In Article  1(2) a reference  has been added  to cover  the case of  banks which 

deposit  in another  bank  "funds entrusted  to  it by one of  its clients".  In 

the  view of  Parliament,  the client  must  not  forfeit  his guarantee  and  "the 

principle  of  the  'beneficial  owner' expanded  in Article  5(3) should  apply, 

provided  that  the  existence  and  identity  of  the  beneficial  owner  can  be 

established".3 

Article 2 

The  inclusion  in Article  2 of  the content  of  Parliament's amendments Nos 8, 

10,  11  and  12, all  of  which  relate  to  this Article, has  required  it  to be 

redrated  more  extensively  than  is warranted  by  the  strict  content  of  the 

amendments,  because  it  was  necessary  to  clarify  certain  points  which  had 

become necessary  for  the cohesiveness of  the whole text. 

For  example,  it was  necessary  to spell  out  the  limits of  the exemption  and 

to amend  the details of  the exclusion  procedure  slightly  in order  to comply 

with  Parliament's  request  for  the  Article  to  make  clear  that  it  is  the 

guarantee scheme, or  rather  its managers, which undertake  the exclusion.  It 

was  therefore  necessary  to add  that  they  cannot  do  so unless  authorized  by 

national  law and  with  the  consent  of  the  supervisory  authorities;  this was 

not explicitly stated  in the  initial  version of  the text but does not change 

its meaning. 

The wording  adopted  in Article  2(1) of  this amended  proposal  corresponds  in 

spirit  to  Parliament's  suggestion,  stating  the  exemption  conditions  more 

fully  (institutions must be covered by a scheme which guarantees their  total 

solvency). 

With  regard  to  Article  2(3)  the  Commission  had  proposed  that,  after 

exclusion  from a guarantee scheme, deposits  (old or new) be guaranteed  for a 

one-year  period. 

The  Economic  and  Social  Committee  requested  that  this one-year  guarantee be 

limited to deposits existing at  the time of  the exclusion. 

3  Document  PE 202.403/fin. (Explanatory  statement,  p.15). 

k 

-  4 -

Parliament  requested  that  this guarantee be  limited  to existing  deposits and 

to those placed with in one month of  the exclusion. 

The Commission  wished  an  intervention by  the supervisory  authorities to make 

it  impossible  for  credit  institutions  not  covered  by  a guarantee  scheme  to 

receive  new  deposits,  and  therefore  supported  Parliament's  request  for  an 

amendment  of  this point. 

Article 3 

Article  3  has  chiefly  been  amended  to  introduce  a  rule  which  states  that 

Member  States  shall  take  account  of  the  coverage  which  may  be  received  by 

branches  established  by  credit  institutions  with  their  head  office  outside 

the Committee  if they  already  belong  to a guarantee  scheme  (this must  be at 

least  equivalent  to  the  scheme  in  force  in  the Member  State  in which  they 

are  located). 

Article  4 

Article  4  increases  to  ECU 20 000  the  minimum  level  of  compensation, 

provides  that  deposits  of  "vital  importance"  may  be  guaranteed  in  their 

entirety and adds a review clause. 

For  this  review  clause,  a period of  five  years  has been  laid  down  (instead 

of  the  two  years  requested);  the  period  could  of  course  be  shorter  if 

necessary,  but  it seems  to be  the minimum  within  which  some  experience  can 

be  acquired.  Five  years  might  even  prove  insufficient  in  view  of  the 

experience  involved  since  it  is  very  desirable  for  recourse  to  the 

deposit-guarantee scheme to remain exceptional. 

The  two-year  period  envisagedn  by  Parliament  is somewhat  unrealistic  given 

the soundness of European  institutions and  the supervision  to which  they are 

subject.  Any  monetary  readjustments  that  Member  States  might  consider 

necessary  are  permitted  at  any  time,  since  the  Directive  allows  for  the 

level of coverage  to be set  above the harmonized  minimum. 

5" 

- 5 -

Article 6 

Article 6 sets out  the details concerning  information. 

None  of  the other  amendments  requested  by  Parliament  and  the  Economic  and 

Social  Committee  has been adopted.  The  two  institutions have been  informed 

of  the reasons behind  the rejection of  their amendment  request. 

M l.  Parliament amendments not  Included  the amended proposal 

17th Recital  (amendment  No 4) 

This  Recital  concerns  Article 3  (treatment  of  branches  of  third-country 

institutions),  paragraph  1  of  which  has  been  amended  in  line  with 

Parliament's  amendment  No  12. 

However,  the  amendment  requested  for  this 

Recital  concerns  Article 3(2),  which  has  not  been  amended:  there  is 

therefore  no  reason  to  delete,  in  order  to  satisfy  Parliament,  the 

requirement  to  inform  depositors,  which  is  an  essential  part  of 

Article 3(2). 

Article 1 

There  are  six  amendments  to  this  Article.  Amendment  No 5  adds  two 

definitions  (credit  institution  and  branch),  which  there  has  been  no 

difficulty  in  taking  over  in  the  modified  proposal,  and  an  exception 

covering  a  particular  category  of  bonds, defined  in  a  previous  directive, 

which may also be adopted.  Two amendments requested  by Parliament have not 

been  able  to  be  adopted:  the  last  indent  of  the  amendment  refers  to 

categories  of  bonds  which  are  not  covered  by  uniform  arrangements  at 

European  level  and  are  thus  listed  in the annex, with  certain Member  States 

wishing  them to be covered by the Directive, with others not  requiring  this. 

The  reference  to  "interest  due  and  not  paid"  raises  the  problem  of 

contractual  freedom:  the method  of  calculation  described  by  Parliament may 

well  be  the most  common one, but  the contracting  parties should  be able  to 

envisage  others  (such  an  addition would  prohibit  this, which  does  not  seem 

proportionate). 

- 6 -

Amendment  No 6  would  completely  change  the  whole  tenor  of  the  Commission 

proposal  as regards non-availability of deposits, by  lengthening  the ten-day 

period  indefinitely.  The  ten-day  limit  is  necessary  if  the  provision  is 

not  to  lose  all  effect,  and  it  is even  desirable  that  the guarantee  should 

begin  to be paid  to depositors before  the ten days have elapsed. 

Amendment  No 20  refers  to  deposits  made  in  order  to  defraud  the  system. 

There  seems  no  point  in  specifying  that  such  deposits  shall  not  be 

reimbursed,  precisely  because  they  are not  deposits  to be  repaid  "under  the 

legal  and  contractual  conditions"  applicable  to  them  (Article  1(1)). 

If 

the  fraud  is discovered  before  payment,  they  will  of  course  not  be  covered 

by  the  guarantee  and  if  the  fraud  is  discovered  after  payment,  the  sums 

received  will  have  to  be  returned  to  the  guarantee  system,  not  under  this 

Directive but under  ordinary  law of each Member  State. 

Art icle 2 

There  are  four  amendments  concerning  this  Article,  two  of  which  have  been 

taken over  in the amended  proposal. 

Amendment  No 8  refers  to  postal  banks,  in  connection  with  Article  3  of 

Directive  77/780/EEC,  which  specifically  excludes  certain  of  them. 

Their 

inclusion  is thus erroneous. 

The  main  point  of  this  amendment  is  to  loosen  the  requirement  for  ail 

recognized  institutions to join a deposit-guarantee scheme.  The  Commission 

is  able  to  accept  some  very  limited  exceptions  to  the  principles  lying 

behind  the Directive, but  their  scope must  be specified  in a  "communautaire" 

way  and must  not  be dependent  exclusively  on  assessment  by  national  control 

authorities.  This  is why  it  has  been  possible  to  adopt  amendment  No 21, 

referring  to  systems  designed  to  protect  institutions  (the  scope  of  the 

exception  to  be  defined  by  the  amended  proposal)  and  not  amendment  No 8, 

which  refers  to  "coverage  which  is  recognized  as  comparable  by  the 

supervisory  authority  concerned". 

Amendment  No 9 affirms  a principle of  non-discrimination which  derives  from 

the  Treaty  and  not  from  this  Directive,  and  it  has  therefore  been  taken 

over. 

-  7 -

Article 4a  (new) amendment  No 16 

This  amendment  adds  an  Article  to  the  Directive  in  order  to  enable 

depositors  to  take  direct  action  against  the  deposit-guarantee  scheme. 

There  is  no  doubt  some  reason  for  this  in  those  countries  where  only 

institutions which  are members of  the  scheme  will  be  able  to have  recourse 

to  the  courts.  At  Community  level,  however,  the  practical  scope  of  this 

amendment  is  likely  to  be  limited,  as  depositors  with  branches  will 

necessarily  have  to  exercise  this  right  in  another  Member  State.  The 

Commission proposal  therefore does not  take over  this amendment. 

Art icle 7 amendment  No 18 

This amendment  reduces  the  time  limit  for  payment  from  three months  to two. 

This  touches  on  an  essential  point  in  the  Commission  proposal:  the 

three month  limit  cannot  be  reduced,  as  it  is  in  any  case  extremely  short 

given  the verification operations which  have  to be carried out before making 

payments. 

The  checks may  be made  very  long  and  difficult  by  the  disorder 

often  encountered  in  the  accounts  of  credit  institutions  which  are  in 

crisis. 

Annex  - point 6  (amendment  No 19) 

The purpose of  this amendment  is to delete pension  funds  from  the annex  and 

so to make  it compulsory  to cover  them. 

This does not  take account of  the 

very  different  arrangements  covering  such  funds.  Certain  countries, where 

pension  funds  are  much  better  protected, by  other  domestic  rules,  are 

radically  opposed  to  bringing  them, within  the  scope  of  bank  deposit 

protection schemes. 

Amended  proposal  for a Council  Directive on deposit-guarantee schemes 

COMMISSION 

INITIAL PROPOSAL 

AMENDED  PROPOSAL 

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  the  proposal  from  the 

Comm i ss i on, 

In 

cooperation 

with 

the 

European 

Parliament, 

Having  regard  to  the  opinion  of  the 

Econom i c and Soc i a I Comm i t tee, 

Tenth  recital 

Tenth recital 

Whereas, however, the harmonized  guarantee 

Whereas,  however,  the  harmonized 

level  must  not  be  too  low  in order  not  to 

guarantee  level  must  not  be  too  low 

leave  too  great  a  number  of  deposits 

in  order  not  to  leave  too  great  a 

outside  the  minimum  protection  threshold; 

number  of  depositors  outside  the 

whereas  in  the  absence  of  statistics  on 

minimum protection  threshold; whereas 

the amount  and distribution of deposits in 

i t  seems  reasonable  to  take  as  a 

Community  credit  institutions,  it  seemed 

basis  an  amount  of  ECU 20 000 as  the 

reasonable  to  take  as  a  basis  the  median 

harmonized  guarantee  level: 

guarantee offered  by  the national systems; 

whereas that  amount  is ECU 15 000; 

- 2 

INITIAL PROPOSAL 

AMENDED PROPOSAL 

Eleventh  recital 

Eleventh  recital 

Whereas  in the six Member  States which are  Whereas  some  Member  States  offer 

above  that  median  level,  the  guarantee  depositors  a  coverage  of  their 

schemes  offer  depositors  a  coverage  of  deposits which  is higher: whereas  it 

their deposits which  is higher; whereas  it  does  not  seem  appropriate  to  require 

does  not  seem  appropriate  to  require  that  that  these  schemes, certain  of  which 

these  schemes, certain  of  which  have  been  have  been  introduced  only  recently 

introduced  only  recently  pursuant  to  pursuant  to Recommendation 87/63/EEC, 

Recommendation 87/63/EEC,  be  amended  on  be amended on  this point; 

this point; 

Fourteenth  recital  a (new) 

Whereas 

harmonizat ion 

of 

deposit-quarantee  schemes  in  the 

Community must under  no circumstances 

Jeopardize  schemes  based  on  the 

protect ion 

of 

inst i tut ions. 

part icularly 

demonstrated 

as 
their 

they 

have 

efficiency; 

whereas some Member  States may accept 

that  institutions  participating  in 

such schemes, which pursue a slightly 

different  protection  goal,  satisfy 

the Directive's objectives; 

HAS ADOPTED THIS DIRECTIVE 

/io 

-  3  -

INITIAL  PROPOSAL 

AMENDED  PROPOSAL 

Article  1 

Art icle 1 

1.'For  the  purpose  of  this  Directive,  the  1.  For  the  purpose  of  this  Directive 

following  definitions  shall  apply: 

the 

following 

definitions 

shall 

apply: 

Credit 

institution:  an  undertaking 

whose  business  is  to  receive  deposits 

or  other  repayable  funds  from  the 

public  and  to  grant  credits  for  its 

own  account. 

Branch:  a  place  of  business  which 

forms  a  legally  dependent  part  of  a 

credit  institution  and  which  conducts 

directly 

all 

or 

some 

of 

the 

operations  inherent  in  the  business 

of  credit  institutions:  any  number  of 

branches  set  up  in  the  same  Member 

State  by  a  credit  institution  having 

its  head  office  in  another  Member 

State  shall  be  regarded  as  a  single 

branch: 

1 

Depos i t: credit  balances  which  result  from  Depos i t: Credit  balances  which  result 

funds  left  in  accounts  or  from  temporary  from  funds  left  in  accounts  or  from 

situations  deriving  from  normal  banking  temporary  situations  deriving  from 

transactions 

and 

which 

the 

credit  normal  banking  transactions  and  which 

institution  must  repay  under  the  legal  and  the  credit 

institution  must  repay 

contractual 

conditions  applicable,  and  under 

the 

legal 

and 

contractual 

claims  for  which  negotiable  certificates  conditions  applicable,  and  claims  for 

have  been  issued  by  a  credit  institution; 

which  negotiable  certificates  have 

been  issued  by  a  credit  institution, 

with  the  exception  of  bonds  which 

sat isfy 

the 

condi t ions 

of 

Article  22(4) 

of 

the 

Directive 

concerning 

undertakings 

for 

collective  investment  in  transferable 

securities  (UCITS)  (88/220/EEC); 

H 

The  other  definitions  are  unchanged. 

INITIAL  PROPOSAL 

AMENDED  PROPOSAL 

_ 4 -

Article  1  (end) 

Art icle  1  (end) 

2.  The  following  shall  be  excluded  from 

2.  The  following  shall  be  excluded 

any  repayment  by  the  guarantee  schemes: 

from  any  repayment  by  the  guarantee 

-  the  obligations  towards  other  credit 

schemes ; 

inst itut ions; 

-  subject 

to 

the 

provisions 

of 

Article 

5 ( 3 ). 

the 

obligations 

-  subordinated  loans  in  respect  of  which 

towards  other  credit  institutions; 

there  exist  binding  agreements  whereby 

such  loans  are  not  to  be  repaid  until 

-  subordinated  loans  in  respect  of 

after  settlement  of  all  other  debts  in 

which 

there 

exist 

binding 

the 

event 

of 

the 

bankruptcy 

or 

agreements  whereby  such  loans  are 

liquidation  of  the  credit  institution. 

not 

to  be  repaid  until 

after 

settlement  of  all  other  debts  in 

the  event  of  the  bankruptcy  or 

liquidation 

of 

the 

credit 

inst1 tut ion. 

/Il 

- 5 -

INITIAL PROPOSAL 

AMENDED  PROPOSAL 

Article 2 

Article 2 

1.  Each Member  State  shall  ensure  that  on  1.  Each  Member  State  shall  ensure 

its 

territory 

one 

or 

more  that  on  its  territory  one  or  more 

deposit-guarantee  schemes  are  introduced  deposit-guarantee 

schemes 

are 

in 

which 

all 

credit 

institutions  introduced.  With  the  exception  of 

authorized  in  that  Member State  under  the  cases  referred 

to  in  the 

Article 3  of  Directive 77/780/EEC  must  fol lowing 

subparagraph. 

no 

take  part.  The  schemes  shall  cover  the  institution authorized  in that Member 

depositors  of  branches  set  up  by  such  State 

under 

Article 3 

of 

institutions  in other Member  States. 

Directive 77/780/EEC 

may 

accept 

deposits unless  it  is a member of one 

of  these  schemes.  The  schemes shall 

cover  the  depositors  of  branches set 

up  by  such  institutions  in  other 

Member States. 

Nevertheless.  Member 

States  may 

exempt  a  credit  institution  from 

taking  part  in  a  deposit-guarantee 

scheme  if that  institution belongs to 

a  scheme  which  protects  the  credit 

institution  itself  and  in particular 

guarantees  its  liquid  assets  and  its 

solvency, provided that: 

- such  protection  is  recognized  as 

equivalent  to  that  provided  by  the 

authorized scheme or schemes, and 

-  the  protection  concerned  is  not 

that  granted  to  a  public  credit 

institution 

by 

Member 

States 

themselves  or  by  their 

local 

author it ies. 

n 

2. Unchanged. 

6  -

INITIAL  PROPOSAL 

AMENDED  PROPOSAL 

Art icle  2  (end) 

Art icle  2  (end) 

3.  If  one  of  the  credit 

institutions 

3.  If  one  of  the  credit  institutions 

required  by  paragraph  1  to  take  part  in 

required  by  the  first  subparagraph  of 

the  scheme  or  one  of  the  branches  granted 

paragraph  1  to  take  part 

in  the 

voluntary  membership  under 

paragraph  2 

scheme  or  one  of  the  branches  granted 

does  not  comply  with  the  obligations 

voluntary 

membership 

under 

incumbent  on  it  as  a  member  of  the 

paragraph  2  does  not  comply  with  the 

deposit-guarantee  scheme,  the  supervisory 

obligations  incumbent  on  it  as  a 

authority  which  issued  the  authorization 

member 

of 

the 

deposit-guarantee 

shalI  be  not if ied. 

scheme,  the  supervisory 

authority 

which  issued  the  authorization  shall 

be  notified  and,  in  cooperation  with 

the  managers  of  the  guarantee  scheme, 

shall  take  all  appropriate  measures. 

including 

the 

imposition 

of 

penalties,  to  secure  compliance  by 

the  credit 

institution 

with 

its 

obi igat ions. 

After  taking  all  the  measures  necessary  to 

If.  as  a  result  of  these  measures 

secure 

compliance 

by 

the 

credit 

compliance  by  the  credit  institution, 

institution,  or  branch  thereof,  with  its 

or 

branch 

thereof, 

with 

their 

obligations  and  after  noting  the  decisions 

obligations 

is  not 

secured, 

the 

taken  by  the  supervisory  authority  (for 

managers  of  the  guarantee  scheme  may 

example  reorganization  or  withdrawal  of 

exclude  the  credit 

institution  or 

the  authorization),  the  guarantee  scheme 

branch, where  national  law  authorizes 

may  exclude  the  credit  institution  or 

such  exclusion  and  with  the  explicit 

branch. 

consent  of  the  supervisory  authority. 

In  that  case,  the  guarantee  covering  the  In  that  case,  the  guarantee  covering 

institution's 

depositors 

shall 

be  the  deposits  with  that  institution, 

maintained  for  twelve  months. 

or  branch  thereof,  which  were  placed 

no  later  than  one  month  after  the 

date 

of 

exclusion. 

shall 

be 

maintained  for  twelve  months  from  the 

date  of  exclusion. 

a. 

7 -

INITIAL PROPOSAL 

AMENDED  PROPOSAL 

Art icle 3 

Art icle 3 

1. 

Subject 

to 

Article 9(1) 

of  1.  Subject 

to  Article 9(1)  of 

Directive 77/780/EEC,  Member  States  may  Directive 77/780/EEC,  Member  States 

stipulate  that  the branches established by  shall  ensure  that  the  branches 

credit  institutions with  their  head office  established  by  credit  institutions 

outside  the Community must  join a deposit-  with  their  head  office  outside  the 

guarantee  scheme  in  operation  on  their  Community receive coverage equivalent 

territory. 

2. Unchanged 

3. Unchanged. 

to  that  applicable  in  the  Member 

State  concerned  under  the  terms of a 

guarantee  scheme  to  which  their 

parent  institution belongs. 

FaiIing 

this.  Member  States  may 

stipulate 

that 

the 

branches 

established  by  credit  institutions 

with  their  head  office  outside  the 

Community  must 

Join  a  deposit-

guarantee  scheme  in  operation  on 

their  territory. 

/T 

- 8 -

INITIAL PROPOSAL 

AMENDED  PROPOSAL 

Article 4 

Article 4 

1.  The  deposit-guarantee  schemes  shall  1.  The  deposit-guarantee  schemes 

stipulate  that  the aggregate deposits of a  shall  stipulate  that  the  aggregate 

given  depositor  must  be  covered  up  to  deposits of a given depositor must be 

ECU 15 000  in  the  event  of  a  financial  covered up to ECU 20 000  in the event 

crisis  in  a  credit  institution  rendering  of  a  financial  crisis  in  a  credit 

deposits unavailable. 

institution 

rendering 

deposits 

unavailab le. 

2. Unchanged. 

3.  This  Article  shall  not  preclude  the  3.  This  Article  shall  not  preclude 

retention  or  adoption  of  provisions  which  the 

retention 

or 

adoption 

of 

offer  a higher  guarantee ceiling. 

provisions 

which 

offer 

more 

comprehensive  cover  for  depositors. 

in  particular  by  extending  the 

categories  of  investors  protected  by 

*'•• 

the guarantee  or  raising  the maximum 

level  of  compensation,  nor  s Jail  It 

preclude  the  adoption  of  provisions 

stipulating  that  certain  deposits  of 

vital  importance  such  as  pension 

funds  must  be  guaranteed  in  their 

ent irety. 

4.  Member  States  may  limit  the  guarantee  4.  Member  States  may  limit  the 

provided  for  in  paragraph  1  or  that  guarantee provided  for  in paragraph 1 

referred  to  in paragraph  3  to a specified  or  that  referred  to  in paragraph  3 to 

percentage  of  the  deposits.  However,  the  a  specified 

percentage 

of 

the 

percentage guaranteed must  equal  or exceed  deposits.  However,  the  percentage 

90%  of  the  aggregate  deposits  until  the  guaranteed  must  equal  or  exceed  90% 

amount  to  be  paid  under  the  guarantee  of  the  aggregate  deposits  until  the 

reaches ECU  15 000. 

amount  to be paid under  the guarantee 

reaches ECU 20 000. 

U 

INITIAL PROPOSAL 

AMENDED  PROPOSAL 

-  9 -

Art icle 4 (end) 

5. No  later  than five years after  the 

date  mentioned  in  Article 8(t). the 

Commission  shall  present  a  report  to 

the  Council  on  the  application  of 

this 

Article. 

accompanied 

if 

necessary  by  proposals  which  in 

particular  take account  of changes in 

the  banking  sector  and  in  the 

economic  and  monetary  situation  in 

the Community. 

<? 

INITIAL PROPOSAL 

AMENDED  PROPOSAL 

-  10 -

Art icle 5: Unchanged 

Art icle 6 

Article 6 

1.  Member  States  shall  ensure  that  the  1.  Member  States  shall  ensure  that 

managers of  the credit  institution  provide  the 

managers 

of 

the 

credit 

depositors  with  the  information  necessary  institution  provide  depositors  with 

for  them  to  identify  the deposit-guarantee  the  information necessary  for  them to 

scheme  in  which  the  institution  and  its  identify  the deposit-guarantee scheme 

branches  take  part  within  the  Community,  in  which  the  institution  and  its 

The  limits  or  ceilings  applicable  under  ©ranches 

take 

part 

within 

the 

the  deposit-guarantee  scheme  shall  be  Community.  The  amount  of  coverage 

indicated 

in  a  readily-comprehensible  under  the  deposit  guarantee  shall  be 

manner. 

made available to depositors. 

Information  shall  also  be  given  at 

first  request  on  the  conditions  for 

* 

compensation  and  the  formalities 

which  must  be  fulfilled  in order  to 

obtain compensation. 

2. Unchanged. 

Art icies 7 to 9: Unchanged. 

Annex: Unchanged 

n 

ISSN 0254-1475 

COM (93) 253 final 

DOCUMENTS 

EN 

10 

Catalogue number : CB-CO-93-282-EN-C 

ISBN 92-77-56333-8 

Office for Official Publications of the European Communitiôs 
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