Banking and investment services: Commission proposes simplification of Banking Directives

United Kingdom
The Commission has proposed a single "Banking Code" Directive to replace and consolidate nineteen banking directives already in existence. Its aim would be to make banking legislation more practical, accessible and transparent for financial institutions and users of their services, without changing the substance of the existing measures. This would include the seven basic directives and twelve amending directives which establish a single market for banking services, including the rules on single authorisation. This single authorisation (the so-called European Passport) is issued by a financial institution's home-state authority and enables the institution to carry on its activities throughout the EU. The Directives specifically covered by this consolidation exercise include:

  • The First Banking Directive

  • Directives on the own funds of credit institutions and on a solvency ratio for credit institutions

  • The Second Banking Directive

  • The Directive on large exposures

  • Directive on supervision on a consolidated basis.

The Commission also urged Member States to simplify their national laws, since they impose a greater administrative burden for companies than Community legislation.