CELEX: 51974PC2100
Language: en
Date: 1974-12-10
Title: Proposal for a DECISION OF THE COUNCIL setting up a Committee for Contact between the authorities of the Member States responsible for the supervision of credit institutions (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 2100
Vol. 1974/0347
 ---pagebreak--- Disclaimer
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                          COM(74)2100 final
                                                          Brussels , 10 December 1974
                                  Proposal for a
                              DECISION OF THE COUNCIL
             setting up a Committee for Contact "between the authorities
               of the Member States responsible for the supervision
                              of credit institutions
                  ( submitted to the Council by the Commission)
  C0M(74) 2100 final
 ---pagebreak---                           EXPLANATORY MIORANIUM
         Recent events in the tanking industry, and especially m the foreign
exchange and eurocurrency markets, have made progress in the coordination of
"bank control said regulation very urgent . The Finance Ministers , at their
meeting of 18th November , laid stress on this point .
         The Commission has just proposed to the Council a directive on the
 coordination of the essential elements of the system of regulation of crddit
 institutions .  This directive is no mere than an outline of the 'basic
 features of coordination in this field and will have to "be completed, in
 a series of subsequent stages , by more detailed rules . Howe- er , it must
be expected that the basic text which has now been proposed will not be
 adopted for several months , in view of the procedures involved.
         Under these circumstances , it is the Commission 's view that a
meaningful step should be taken without delay. For this reason it proposes
 that there should be set up immediately, alongside the CommiL^ion, a Contact
 Committee of the authorities responsible , within each Memb-.r 3 u ate , for the
 control of credit institutions . The work of this Committee will be orga&ized
 in such a way as to ensure close and regular cooperation with the monetary
 authorities and especially with E5CCT!. It is also important that the
 powers of the Commission deriving from the Treaty are not prejudiced.
                                       i
         The proposed decision should make it possible to compare without
 delay the practices of the various authorities and to begin discussion
 between these authorities and the Commission with a view to developing
 urgently appropriate measures to improve the financial security of credit
 institutions (liquidity, solvency), and in particular of those active on
 the euro-markets .
 ---pagebreak---                              Proposal for a
                         DECISION OF THE COUNCIL
    setting up a Committee for Contact "between the authorities of the
  Member States responsible for the supervision of credit ir^iv'/utions
  •mmm                                                         --tja» ;i ** ■ m ■!■
           I
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community-
Having regard to the proposal from the Commission of
for a Council Directive on the coordination of laws , regulations , and
administrative provisions governing the commencement and carrying on of
business by credit institutions" j
Whereas the present situation on the euro-markets and the risks to which
credit institutions operating on these markets oan be exposed make it
necessary to teJke immediate measures in order to safeguard the financial
security of these institutions ;
Whereas the Commission proposal provides in Article f1 for a Contact
Committee of authorities responsible for the supervision of credit insti­
tutions to be attached to the Commission ;
Whereas the cooperation of the authorities within that Committee , and in
particular their common attitude towards regulation of liquid! ty and
solvency of credit institutions as indicated in the Commission proposal ,
would help to safeguard the financial security of credit institutions ;
Whereas the said Committee should for these reasons be set up without
delay ;
HAS DECIDED AS FOLLOWS 8
 ---pagebreak---                                   Article 1
1.       There shall "be forthwith attached to the Commission a Contact
Committee of authorities responsible for the supervision of credit institu­
tions .   It shall meet for the first time not later than 15 January 1975 .
2.       The Contact Committee shall be composed of a maximum of two represen­
tatives of the supervisory authorities of each Member State , together with
two representatives of the Commission.      These representatives may be accom­
panied from time to time , subject to prior agreement of the Committee , by
one or more advisors .    Secretarial services for the Committee shall be
provided by the Commission.
3.       The first meeting of the Committee shall be called by the Commission
under the chairmanship of one of its representatives .     The Committee shall
at that meeting establish its rules of procedure , which shall in particular
contain provisions concerning its relations with the European Fund for
Monetary Cooperation-, and shall elect its first Chairman and deputy Chairman.
4.       The offices of Chairman and deputy Chairman shall be filled in rota­
tion , for one year at a time , by members representing the supervisory authori­
ties of one and the same Member State .
5.       The Committee shall be convened by its Chairman , either on his own
initiative op at the request of one of its members .
6.       All proceedings of the Committee shall be covered by the obligation
of professional secrecy . Such proceedings may not be made public in any
way by express decision of the Committee .
                                  Article 2
1.       The Committee shall examine as a matter of urgency measures to guaran–
tee the financial stability of credit institutions , and particularly of those
operating on the euro-markets . The purpose of such measures shall be to
regulate the liquidity and solvency of credit institutions and in particular
to limit the risks arising from foreign exchange operations .
 ---pagebreak---                                    - 3 -
2.       The Committee shall examine as a matter of priority the essential
elements of a coordinated system of regulation and control of the solvency
and liquidity of credit' institutions .  It shall forward its opinion to the
Commission within three months of its first meeting, so that the Commission
may "be able to submit proposals to the Council as soon as possible .
 ---pagebreak--- Supplementary Declaration concerning liaison between the Contact
Committee , FECOM and national monetary authorities.
( to "be written into the minutes of the Commission)
          It is important that the Contact Committee should operate in
liaison with FECOM on the one hand and national monetary authorities
on the other .    The rules of procedure of the Committee , which will "be
decided at its first meeting, will ensure that close and regular
cooperation is established between these "bodies and in particular with
FECOM.