WRITTEN QUESTION No. 722/98 by Amedeo AMADEO , Salvatore TATARELLA to the Commission. Capital adequacy
Date: 1998-03-18
Institutions: AMADEO, European Parliament, TATARELLA
Subjects: competition, credit guarantee, credit institution, financial institution, financial solvency, investment company, management audit, share capital

C 354/22

EN

Official Journal of the European Communities

19. 11. 98

The number of codes of the simplified CN cannot be set at an arbitrary level but should ensure that the quality of
the data collected meets the requirement.

An  important  cornerstone  for  simplifying  and  modernising  the  application  of  the  CN  is  therefore  the  work
currently  undertaken  by  the  Commission  (SLIM/CN).  Equally  important  is  the  conclusion  of  the  Council  on
27 November 1997 to develop informatic tools with the aim of facilitating the use of the CN, and including the
commercial terminology used by the enterprises.

In addition to the simplification of the CN itself the Commission will propose measures which will allow in
particular SMEs a simplified Intrastat declaration.

As  far  as  the  statistical  threshold  is  concerned  the  present  application  takes  into  account  the  discrepancies
between  the  national  economies  in  particular  the  structural  pattern  of  their  enterprises  and  products.  Most
Member States have raised their thresholds since the introduction in 1993, thereby exempting an even larger
number of small but also medium sized enterprises. More than 60% of all intra-Community operators are now
exempted from the statistical declaration obligation.

Taking into account the differences across Member States a uniform threshold applied Community wide could
not be set at a high level without detrimental effects on trade statistics. A uniform threshold at a low level would
on the other hand not be efficient, and the objective of exempting a substantial part of enterprises could therefore
not be reached.

(1)  COM(97) 275 final.

(98/C 354/49)

WRITTEN QUESTION E-0722/98

by Amedeo Amadeo (NI) and Salvatore Tatarella (NI) to the Commission

(18 March 1998)

Subject: Capital adequacy

This  question  concerns  the  proposal  for  a  European  Parliament  and  Council  Directive  amending  Council
Directive 93/6/EEC on the capital adequacy of investment firms and credit institutions (COM(97) 71 final ›
97/0124 COD) (1).Can the Commission amend its proposal on the back-testing of internal models in order to
ensure that it is more compatible with the aims of the competent international authorities and prevent the creation
of  competitive  advantages  for  financial  institutions  in  the  EU  by  imposing  prescriptive  or  excessive
requirements?

In  particular,  financial  institutions  should  not  be  obliged  to  carry  out  daily  back-testing  on  the  basis  of  two
different systems and it should be specified on what basis more onerous requirements will be applied.

In  line  with  the  Basel  Agreement,  the  competent  national  authorities  should  also  have  a  greater  margin  for
manoeuvre  than  the  Commission  in  imposing  on  credit  institutions  which  have  registered  between  5  and
9 overshootings over a period of 250 business days stricter capital requirements by using the plus factor.

(1)  OJ C 240, 6.8.1997, p. 24.

Answer given by Mr Monti on behalf of the Commission

(5 May 1998)

The Commission is pleased to inform the Honourable Members that it has amended its proposal for a Parliament
and  Council  directive  amending  Council  Directive  93/6/EEC  of  15  March  1993  on  the  capital  adequacy  of
investment firms and credit institutions (1) in the way that the Honourable Members suggest. The Commission
adopted its amended proposal (2) on 13 February 1998. The Council adopted a common position on this proposal
on 9 March 1998.

(1)  OJ L 141, 11.6.1993.
(2)  COM(98) 90 final.