Committee Reports > List of Committees > Joint > 1989 > Committee on the Secondary Legislation of the European Communities (5th Committee) > Report No. 09 - Proposal for a Second Banking Directive

APPENDIX III

Article II

1.The competent authorities of the home Member State shall ensure the existence within each credit institution of sound administrative and accounting procedures and adequate internal control mechanisms.

2.The competent authorities shall also ensure that such procedures and mechanisms exist in credit institutions included in the scope of consolidated supervision provided for in Directive 83/350/EEC.