Credit institutions, investment firms: solvency ratio (amend. Directives 77/780/EEC, 89/647/EEC, 93/6/EEC)

OBJECTIVE: to amend Directive 77/780/EEC (business of credit institutions), Directive 89/647/EEC (solvency ratio for credit institutions) and Directive 93/6/EEC on the capital adequacy of investment firms and credit institutions. COMMUNITY MEASURE: Directive 98/33/EEC of the European Parliament and the Council. SUBSTANCE: The Directive makes certain changes to the above directives. It widens the possibilities for exchanging information between the banking supervision authorities in the European Union and non-banking supervision authorities in third countries. It introduces more detailed rules on prudential supervision with regard to the risk capital of loans made by credit institutions, in the light of the experience gained from application of the present rules. It takes account of recent developments in prudential regulations at the wider international level, by supplementing the existing rules on capital requirements of credit institutions with regard to credit risks linked to over-the- counter derivative instruments. ENTRY INTO FORCE: 21/07/1998 DEADLINE FOR TRANSPOSITION: 21/07/2000 �