CELEX: 51997PC0285
Language: en
Date: 1997-06-27
Title: Amended proposal for a European Parliament and Council Directive amending Article 12 of Directive 77/780/EEC on the coordination of laws, regulations and administrative provisions relating to the taking-up and pursuit of the business of credit institutions, Articles 2, 5, 6, 7, 8 and Annexes II and III of Directive 89/647/EEC on a solvency ratio for credit institutions, Article 2 and Annex II of Directive 93/6/EEC on the capital adequacy of investment firms and credit institutions

COMMISSION OF THE EUROPEAN COMMUNITIES
*    it
                                             Brussels, 27.06.1997
                                             COM(97) 285 final
                                             96/0121 (COD)
                          Amended proposal for a
        ELOBQESAN PARLIAMStgl^WP COUNCIL PIFJBCTIVE
    AMENDING ARTICLE 12 OF DIRECTIVE 77/780/EEC ON THE
   COORDINATION OF LAWS, REGULATIONS AND ADMINISTRATIVE
  PROVISIONS RELATING TO THE TAKÏNG-UP AND PURSUIT OF THE
                   BUSINESS OF CREDIT INSTITUTIONS,
ARTICLES 2,5,6, 7, 8 AND ANNEXES II AND III OF DIRECTIVE 89/647/EEC
          ON A SOLVENCY RATIO FOR CREDIT INSTITUTIONS,
  ARTICLE 2 AND ANNEX II OF DIRECTIVE 93/6/EEC ON THE CAPITAL
   ADEQUACY OF-INVESTMENT FIRMS AND CREDIT INSTITUTIONS
              (COM(96)183 fmaI/2 - C4 - 0258/96 - 96/0121(COD))
         (presented by the Commission pursuant to Article 189 a (2)
                             of the EC-Treaty)
 ---pagebreak---  ---pagebreak---                                 EXPLANATORY MEMORANDUM
I.        INTRODUCTION
The proposal for a Directive concerned by this amended proposal was submitted to Parliament and
the Council on 30 April 1996 pursuant to Articles 189b(2) and 57(2) of the EC Treaty.
The Economic and Social Committee handed down a favourable opinion at its 338th plenary
session on 25 September 1996.        One of its two suggestions (concerning the amendment to
Article 8(1) of Directive 89/647/EEC) has been incorporated into the amended proposal,
Parliament having adopted an amendment to that effect.
Parliament adopted (first reading) the legislative resolution giving its opinion on the proposal for a
Directive (COM(96) 183 final 2 - C4 - 0258--96/121 (COD)) at its sitting on 10 April 1997
(EP 258.436/181).
Parliament's opinion comprises two amendments; both have been included in this amended
proposal.
II.      COMMENTS ON THE AMENDMENTS
Parliament called on the Commission to amend two points in the proposal for a Directive. The
Commission considers the two amendments to be acceptable.
1.    The first amendment merely rectifies a shortcoming in the initial proposal.            It aligns
      Article 5(3) of Directive 89/647/EEC on the proposed text by stating that it applies to all the
      items listed in the new Annex III.
2.    The second amendment concerns Article 7(3) of the proposal. It specifies that the Member
      States continue to have the option of applying a weighting of 20% to collateral in the form of
      securities issued by Zone A regional governments or local authorities.
     This amendment is altogether relevant and makes the proposal clearer. Article 7 of the
     proposal is designed to include, as security to which a zero weighting may be applied,
     collateral in the form of securities issued by regional governments or local authorities since
     Article 8(1 ) of Directive 89/647/EEC already provides for a weighting of 20%. Deleting the
     clause "other than those of the Member States" makes it clear that the latter can continue to
     apply a weighting of 20% and that zero weighting is possible only if the conditions laid down
     in Article 7 of Directive 89/647/EEC are met.
                                              X.
 ---pagebreak---    AMENDED PROPOSAL FOR A EUROPEAN PARLIAMENT AND COUNCIL
  DIRECTIVE AMENDING ARTICLE Î2 OF DIRECTIVE 77/780/EEC ON THE
     COORDINATION OF LAWS, REGULATIONS AND ADMINISTRATIVE
     PROVISIONS RELATING TO THE TAKING-UP AND PURSUIT OF THE
                      BUSINESS OF CREDIT INSTITUTIONS,
  ARTICLES 2, 5, 6, 7, 8 AND ANNEXES II AND III OF DIRECTIVE 89/647/EEC
            ON A SOLVENCY RATIO FOR CREDIT INSTITUTIONS,
    ARTICLE 2 AND ANNEX II OF DIRECTIVE 93/6/EEC ON THE CAPITAL
      ADEQUACY OF INVESTMENT FIRMS AND CREDIT INSTITUTIONS
                 (COM(96)183 final/2 - C4 - 0258/96 - 96/0121(COD))
Text proposed by the Commission                  Amendments by Parliament
                                   Amendment 1
                                          Article 2a (new)
                                          Amendment to Article 5(3)
                                          The first sentence of Article 5(3) is
                                          replaced by the following;
                                          !!L   In the case of the off-balance-sheet
                                          items referred to in Article 6(3). the
                                          potential costs of replacing contracts in the
                                          event of counterparty default shall be
                                          calculated bv means of one of the two
                                          methods set out in Annex II."
                                       3
 ---pagebreak---  Text proposed by the Commission                       Amendments by Parliament
                                          Amendment 2
Article 7(3)                                   Article 7(3)
 3.    The Member States may apply a 1.              Subject to Article 7(1). the Member
weighting of 20% to asset items which are States may apply a weighting of 20% to
secured,    to   the    satisfaction   of  the asset items which are secured, to the
competent      authorities    concerned,    by satisfaction of the competent authorities
collateral in the form of securities issued by concerned, by collateral in the form of
Zone A regional governments or local securities              issued by Zone A regional
authorities other than those of the Member governments           or   local   authorities,  by
States, by deposits placed with Zone A deposits            placed     with    Zone A     credit
credit institutions other than the lending institutions         other    than   the    lending
institution, or by certificates of deposit or institution, or by certificates of deposit or
similar instruments issued by those credit similar instruments issued by those credit
institutions.                                  institutions.
                                               ^
 ---pagebreak---                                                                   ISSN 0254-1475
                                                           COM(97) 285 final
                                              DOCUMENTS
EN                                                                  09 01 06
                                    Catalogue number : CB-CO-97-275-EN-C
                                                             ISBN 92-78-21154-0
Office for Official Publications of the European Communities
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