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 IV

Article 7

1.Requests for authorization of a subsidiary whose parent undertaking is governed by the laws of a third country or the acquisition of a participation therein as provided for in paragraph 3 shall be subject to the procedure laid down in this Article.

2.The competent authorities of the relevant Member State shall inform the competent authorities of the other Member States and the Commission of the request for authorization.

3.In the same manner, when informed, according to the provisions of Article 9, that an undertaking governed by the laws of a third country is considering the acquisition of a participation in a credit institution such that the latter would become its subsidiary, the competent authorities of the relevant Member State shall inform the competent authorities of the other Member States and the Commission.

4.The competent authorities of the Member State concerned must suspend their decision regarding requests as referred to in paragraphs 2 and 3 until the procedure provided for in paragraphs 5 and 6 is completed.

5.The Commission shall, within three months of receiving the information provided for in paragraphs 2 and 3, examine whether all credit institutions of the Community enjoy reciprocal treatment, in particular regarding the establishment of subsidiaries or the acquisition of participations in credit institutions in the third country in question.

6.If the Commission finds that reciprocity is not ensured it may extend suspension of the decision referred to in paragraph 4, using the procedure provided for in Article 20.

7.The Commission shall present suitable proposals to the Council with a view to achieving reciprocity with the third country in question.