# Directive 2000/12/EC of the European Parliament and of the Council of 20 March 2000 relating to the taking up and pursuit of the business of credit institutions EU Directive 2000/12 · adopted 20 March 2000 Directive 2000/12/EC of the European Parliament and of the Council of 20 March 2000 relating to the taking up and pursuit of the business of credit institutions ## Introductory text Directive 2000/12/EC of the European Parliament and of the Council of 20 March 2000 relating to the taking up and pursuit of the business of credit institutions ## Title I: DEFINITIONS AND SCOPE ## 1 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 3 Prohibition for undertakings other than credit institutions from carrying on the business of taking deposits or other repayable funds from the public . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Title II: REQUIREMENTS FOR ACCESS TO THE TAKING UP AND PURSUIT OF THE BUSINESS OF CREDIT INSTITUTIONS ## 4 Authorisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 5 Initial capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 6 Management body and place of the head office of credit institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 7 Shareholders and members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 8 Programme of operations and structural organisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 9 Economic needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 10 Authorisation refusal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 11 Notification of the authorisation to the Commission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 12 Prior consultation with the competent authorities of other Member States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 13 Branches of credit institutions authorised in another Member State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 14 Withdrawal of authorisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 15 Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 16 Qualifiying holding in a credit institution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 17 Procedures and internal control mechanisms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Title III: PROVISIONS CONCERNING THE FREEDOM OF ESTABLISHMENT AND THE FREEDOM TO PROVIDE SERVICES ## 18 Credit institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 19 Financial institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 20 Exercise of the right of establishment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 21 Exercise of the freedom to provide services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 22 Power of the competent authorities of the host Member State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Title IV: RELATIONS WITH THIRD COUNTRIES ## 23 Notification of the subsidiaries of third countries' undertakings and conditions of access to the markets of these countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 24 Branches of credit institutions having their head offices outside the Community . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 25 Cooperation with third countries' competent authorities regarding supervision on a consolidated basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Title V: PRINCIPLES AND TECHNICAL INSTRUMENTS FOR PRUDENTIAL SUPERVISION ### Chapter 1: PRINCIPLES OF PRUDENTIAL SUPERVISION ## 26 Competence of control of the home Member State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 27 Competence of the host Member State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 28 Collaboration concerning supervision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 29 On-the-spot verification of branches established in another Member State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 30 Exchange of information and professional secrecy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 31 Duty of persons responsible for the legal control of annual and consolidated accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 32 Power of sanction of the competent authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 33 Right to apply to the courts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 33a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Chapter 2: TECHNICAL INSTRUMENTS OF PRUDENTIAL SUPERVISION ### Section 1: Own funds ## 34 General principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 35 Other items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 36 Other provisions concerning own funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 37 Calculation of own funds on a consolidated basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 38 Deductions and limits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 39 Provision of proof to the competent authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Section 2: Solvency ratio ## 40 General principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 41 The numerator: own funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 42 The denominator: risk-adjusted assets and off-balance-sheet items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 43 Risk weightings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 44 Weighting of claims for regional governments or local authorities of the Member States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 45 Other weighting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 46 Administrative bodies and non-commercial undertakings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 47 Solvency ratio level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Section 3: Large exposures ## 48 Reporting of large exposures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 49 Limits on large exposures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 50 Supervision on a consolidated or unconsolidated basis of large exposures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Section 4: Qualifying holdings outside the financial sector ## 51 Limits to non-financial qualifying holdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Chapter 3: SUPERVISION ON A CONSOLIDATED BASIS ## 52 Supervision on a consolidated basis of credit institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 53 Competent authorities responsible for exercising supervision on a consolidated basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 54 Form and extent of consolidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 54a Management body of financial holding companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 55 Information to be supplied by mixed-activity holding companies and their subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 55a Intra-group transactions with mixed-activity holding companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 56 Measures to facilitate supervision on a consolidated basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 56a Third-country parent undertakings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Title VI: BANKING ADVISORY COMMITTEE ## 57 Composition and tasks of the Banking Advisory Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 58 Examination of the requirements for authorisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 59 Observation ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Title VII: POWERS OF EXECUTION ## 60 Technical adaptations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Title VIII: TRANSITIONAL AND FINAL PROVISIONS ### Chapter 1: TRANSITIONAL PROVISIONS ## 61 Transitional provisions regarding Article 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 62 Transitional provisions regarding Article 43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 63 Transitional provisions regarding Article 47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 64 Transitional provisions regarding Article 49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 65 Transitional provisions regarding Article 51 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Chapter 2: FINAL PROVISIONS ## 66 Commission information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 67 Repealed Directives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 68 Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 69 Addressees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## ANNEX I LIST OF ACTIVITIES SUBJECT TO MUTUAL RECOGNITION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 7 Trading for own account or for account of customers in: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## ANNEX II CLASSIFICATION OF OFF-BALANCE-SHEET ITEMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## ANNEX III THE TREATMENT OF OFF-BALANCE-SHEET ITEMS ## 1 CHOICE OF THE METHOD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division 2: METHODS ## . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Method 1: the ‘mark to market’ approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Method 2: the ‘original exposure’ approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division 3: CONTRACTUAL NETTING (CONTRACTS FOR NOVATION AND OTHER NETTING AGREEMENTS) ## (a) Types of netting that competent authorities may recognise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## (b) Conditions for recognition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division (c): Effects of recognition ## (i) Contracts for novation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## (ii) Other netting agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## ANNEX IV TYPES OF OFF-BALANCE-SHEET ITEMS ## 1 Interest-rate contracts: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 Foreign-exchange contracts and contracts concerning gold: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 3 Contracts of a nature similar to those in points 1(a) to (e) and 2(a) to (d) concerning other reference items or indices concerning: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## ANNEX V ## PART A REPEALED DIRECTIVES TOGETHER WITH THEIR SUCCESSIVE AMENDMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## PART B DEADLINES FOR IMPLEMENTATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## ANΝΕΧ VI CORRELATION TABLE ## . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . --- Source: https://www.legislation.gov.uk/eudr/2000/12 (the official version) Page: https://openlegislation.uk/eu-directive-2000-12 Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.