IS BROADLY ACCEPTED ; WHEREAS MEMBER STATES WILL THEREFORE SEEK TO CONCLUDE BILATERAL AGREEMENTS WITH NON-MEMBER COUNTRIES DESIGNED TO ENSURE THAT CREDIT INSTITUTIONS IN SUCH COUNTRIES WITH PARTICIPATIONS IN THE COMMUNITY ARE SUBJECT TO EQUIVALENT SUPERVISION AND THAT CREDIT INSTITUTIONS FROM THE COMMUNITY WITH HOLDINGS IN NON-MEMBER COUNTRIES ARE ABLE TO APPLY THE PRINCIPLES LAID DOWN IN THIS DIRECTIVE ;
WHEREAS , PENDING COORDINATION OF CONSOLIDATED ACCOUNTS AND PRUDENTIAL RETURNS , IT IS NOT POSSIBLE TO IMPLEMENT CONSOLIDATED SUPERVISION ON A CONSISTENT BASIS IN ALL MEMBER STATES ; WHEREAS THIS DIRECTIVE REPRESENTS A FIRST STAGE DESIGNED TO ESTABLISH THE PRINCIPLE OF SUPERVISION ON A CONSOLIDATED BASIS AND TO ELIMINATE THE OBSTACLES WHICH HAVE HITHERTO PREVENTED MEMBER STATES FROM APPLYING THE PRINCIPLE ON A UNILATERAL BASIS FOR TRANSACTIONS THROUGHOUT THE COMMUNITY ;
WHEREAS , PENDING FURTHER COORDINATION , THE PROCESS OF CONSOLIDATION WILL BE UNDERTAKEN BY MEMBER STATES ACCORDING TO THEIR NATIONAL PROCEDURES ;
WHEREAS THIS DIRECTIVE IS WITHOUT PREJUDICE TO THE POSSIBILITY OF A MEMBER STATE INTRODUCING A MORE STRINGENT SYSTEM OF SUPERVISION FOR CREDIT INSTITUTIONS , IN PARTICULAR ONE MAKING CONSOLIDATION COMPULSORY IN OTHER CASES ;
WHEREAS , ALTHOUGH FINANCIAL INSTITUTIONS AS DEFINED HEREINAFTER ARE NOT COVERED BY EITHER DIRECTIVE 77/780/EEC OR THIS DIRECTIVE , THEIR INCLUSION IN THE CONSOLIDATION PROCEDURE IS NECESSARY IN ORDER TO ENSURE COMPLETE CONSOLIDATION OF ALL THE CREDIT ACTIVITIES WITHIN A GROUP ,
HAS ADOPTED THIS DIRECTIVE :
ARTICLE 1
DEFINITIONS
FOR THE PURPOSES OF THIS DIRECTIVE :
- " CREDIT INSTITUTION " MEANS , IN ACCORDANCE WITH THE FIRST INDENT OF ARTICLE 1 OF DIRECTIVE 77/780/EEC , AN UNDERTAKING WHOSE BUSINESS IS TO RECEIVE DEPOSITS OR OTHER REPAYABLE FUNDS FROM THE PUBLIC AND TO GRANT CREDITS FOR ITS OWN ACCOUNT ,
- " FINANCIAL INSTITUTION " MEANS AN UNDERTAKING , NOT BEING A CREDIT INSTITUTION , WHOSE PRINCIPAL ACTIVITY IS TO GRANT CREDIT FACILITIES ( INCLUDING GUARANTEES ) , TO ACQUIRE PARTICIPATIONS OR TO MAKE INVESTMENTS ,
- " PARTICIPATION " MEANS THE OWNERSHIP BY A CREDIT INSTITUTION , DIRECTLY OR INDIRECTLY , OF 25 % OR MORE OF THE CAPITAL OF ANOTHER CREDIT OR FINANCIAL INSTITUTION ,
- " SUPERVISION " , PENDING SUBSEQUENT COORDINATION , MEANS THE TECHNIQUES , IN WHATEVER FORM AND HOWEVER IMPLEMENTED , EMPLOYED BY THE COMPETENT AUTHORITIES IN EACH MEMBER STATE IN ORDER TO MONITOR PRUDENTIAL ASPECTS OF A CREDIT INSTITUTION'S BUSINESS ,
- " COMPETENT AUTHORITIES " MEANS THE NATIONAL AUTHORITIES WHICH ARE EMPOWERED BY LAW OR REGULATION TO SUPERVISE CREDIT INSTITUTIONS .
ARTICLE 2
SCOPE
1 . SUBJECT TO ARTICLE 3 ( 2 ) , THIS DIRECTIVE SHALL APPLY TO ALL CREDIT INSTITUTIONS .
2 . THE INSTITUTIONS EXEMPTED FROM THE PROVISIONS OF DIRECTIVE 77/780/EEC AND LISTED IN ARTICLE 2 THEREOF SHALL BE EXEMPTED FROM THIS DIRECTIVE .
3 . MEMBER STATES MAY DEFER THE APPLICATION OF THIS DIRECTIVE TO CERTAIN INSTITUTIONS FOR A MAXIMUM PERIOD OF FIVE YEARS FROM THE DATE OF ITS NOTIFICATION . SUCH DEFERMENT SHALL BE GOVERNED BY ARTICLE 2 (