CELEX: 51991PC0188
Language: en
Date: 1991-06-06
Title: PROPOSAL FOR A COUNCIL DIRECTIVE AMENDING DIRECTIVE 89/299/EEC ON THE OWN FUNDS OF CREDIT INSTITUTIONS

3. 7.91                              Official Journal of the European Communities                               No C 172/3
                                                               II
                                                      (Preparatory Acts)
                                                 COMMISSION
               Proposal for a Council Directive amending Directive 89/299/EEC on the own funds of credit
                                                         institutions
                                                       (91/C 172/03)
                                               COM(91) 188 final — SYN 344
                                     (Submitted by the Commission on 13 March 1991)
 THE COUNCIL OF THE EUROPEAN COMMUNITIES,                          and several commitments as own funds is required;
                                                                   whereas this temporary derogation should not adversely
                                                                   distort competition between credit institutions;
 Having regard to the Treaty establishing the European
 Economic Community, and in particular the first and
 third sentences of Article 57 (2) thereof,                        Whereas in adopting Directive 89/299/EEC the Council
                                                                   has reserved for itself the implementing powers to make
                                                                   technical    adjustments;    whereas    the    Commission
                                                                   undertook to make a proposal for a definitive solution to
 Having regard to Council Directive 89/299/EEC of 17               this problem which takes account of the special charac-
 April 1989 on the own funds of credit institutions ('), in        teristics of the banking sector and which permits the
 which the eligible elements of the own funds of credit            introduction of a more suitable procedure for the
 institutions and the way they are calculated are defined,         implementation of the Directive;
 Having regard to the proposal from the Commission,                Whereas implementating powers of the same nature as
                                                                   those the Council reserved for itself in Directive 89/299
                                                                   of 17 April were granted to the Commission in the
 In cooperation with the European Parliament,                      Second Banking Directive 89/646 of 15 December 1989;
 Having regard to the opinion of the Economic and                  Whereas taking into account the specific characteristics
 Social Committee,                                                 of the banking sector it is appropriate to give the
                                                                   Committee provided for in Article 22 of the Second
                                                                   Banking Directive the role of assisting the Commission
                                                                   in exercising the responsibilities granted to it according
Whereas Article 4 (1) of Directive 89/299/EEC permits              to the rules of procedure laid down in Article 2,
joint and several commitments of borrowers in the case             procedure III, variant (a), of the Council Decision
of credit institutions organized as cooperative societies          87/373/EEC of 13 July 1987 laying down the procedure
or funds to be treated as Article 2 (1) (7) own funds              for the exercise of implementing powers conferred on
items of the said Directive; whereas no provision of the           the Commission (2),
said Directive deals with the treatment of such
commitments in cases where a credit institution
organized as a cooperative society or a fund is trans-
formed into a public limited company;
                                                                   HAS ADOPTED THIS DIRECTIVE:
Whereas the Danish government has expressed a strong                                        Article 1
interest in having their few mortgage credit institutions
organized as cooperatives or funds transformed into                After Article 4 of Directive 89/299/EEC a new Article
public limited companies; whereas in order to facilitate           4a is inserted:
the transformation or to make possible a temporary
derogation allowing them to include part of their joint
(') OJ No L 124, 5. 5. 1989, p. 16.                                O OJ No L 197, 18. 7. 1987, p. 33.
 ---pagebreak--- No C 172/4                             Official Journal of the European Communities                                  3. 7. 91
    'Article 4a                                                      tations to be made to this Directive in the following
                                                                     areas shall be adopted in accordance with the
                                                                     procedure laid down in paragraph 2:
   Denmark may allow its mortgage credit institutions,
    organized as cooperative societies or funds before 1
   January 1990 and transformed into public limited
    companies, to continue to include joint and several                  clarification of the definitions to ensure uniform
    commitments of borrowers as mentioned in Article 4                   application of this Directive throughout the
    (1) in their own funds subject to the following limits:              Community,
    (a) the "basis for calculation" of the part of joint
         and several commitments of borrowers is the
                                                                         clarification of the definitions in order to take
         total of items 1 plus 2 minus 9, 10 and 11 in
                                                                         account in the implementation of this Directive of
         Article 2 (1);
                                                                         developments on financial markets,
    (b) the "basis for calculation" on 1 January 1991 or,
         if transformed at a later date, on the date of
         transformation is the "maximum basis for calcu-                 the alignment of terminology on and the framing
         lation". The "basis of calculation" can never                   of definitions in accordance with subsequent acts
         exceed the "maximum basis for calculation";                     on credit institutions and related matters.
    (c) the "maximum basis for calculation" shall from 1
         January 1997 be reduced by half of the proceeds             2.    The Commission shall be assisted by a
         from any issue of new capital, as defined in                committee composed of representatives of the
         Article 2(1) item 1, made after that date, and              Member States and chaired by a representative of the
                                                                     Commission as provided in Article 22 (2) first
    (d) the maximum amount of joint and several                      paragraph of the Second Banking Directive 89/646
         commitments of borrowers to be included as own              of 30 December 1989.
         funds must never exceed:
             5 0 % n 1991 and 1992,                                  The Commission representative shall submit to the
                                                                     committee a draft of the measures to be taken. The
                                                                     committee shall deliver its opinion on the draft within
             4 5 % n 1993 and 1994,
                                                                     a time limit which the chairman may lay down
                                                                     according to the urgency of the matter. The opinion
             4 0 % n 1995 and 1996,                                  shall be delivered by the majority laid down in Article
                                                                     148 (2) of the EEC Treaty in the case of decisions
                                                                     which the Council is required to adopt on a proposal
             3 5 % n 1997,
                                                                     from the Commission. The votes of the represen-
                                                                     tatives of the Member States in the committee shall
             3 0 % n 1998,                                           be weighted in the manner set out in that Article.
                                                                     The chairman shall not vote.
             2 0 % n 1999,
              1 0 % n 2000 and                                       The Commission shall adopt the measures envisaged
                                                                     if they are in accordance with the opinion of the
                                                                     committee.
         —     0 % after 1 January 2001
         of the "basis for calculation".'
                                                                     If the measures envisaged are not in accordance with
                                                                     the opinion of the committee, or if no opinion is
                           Article 2                                 delivered, the Commission shall, without delay,
                                                                     submit to the Council a proposal concerning the
Article 8 of Directive 89/299/EEC is hereby replaced by              measures to be taken. The Council shall act by a
the following:                                                       qualified majority.
     Article 8
                                                                     If the Council does not act within three months of
    1.     Without prejudice to the report referred to in            the referral to it, the proposed measures shall be
    Article 2 (2), second subparagraph, technical adap-              adopted by the Commission.'
 ---pagebreak--- 3. 7. 91                              Official Journal of the European Communities                          No C 172/5
                        Article 3                               official publication. The methods of making such a
                                                                reference shall be laid down by the Member States.
1.    Member States shall bring into force the laws,
regulations and administrative provisions necessary to          3.     Member States shall communicate to the
comply with this Directive not later than 1 January 1993.       Commission the text of provisions of national law which
                                                                they adopt in the field governed by this Directive.
2.    When Member States adopt these measures, they
                                                                                         Article 4
shall contain a reference to this Directive or shall be
accompanied by such reference on the occasion of their          This Directive is addressed to the Member States.