Commission Directive 95/15/EC of 31 May 1995 adapting Council Directive 89/647/EEC on a solvency ratio for credit institutions, as regards the technical definition of 'Zone A' and in respect of the weighting of asset items constituting claims carrying the explicit guarantee of the European Communities

• Published date: 08 June 1995
• Subject Matter: Freedom of establishment,Internal market - Principles,Approximation of laws
• Official Gazette Publication: Official Journal of the European Communities, L 125, 8 June 1995

|

Commission Directive 95/15/EC of 31 May 1995 adapting Council Directive 89/647/EEC on a solvency ratio for credit institutions, as regards the technical definition of 'Zone A' and in respect of the weighting of asset items constituting claims carrying the explicit guarantee of the European Communities

Official Journal L 125 , 08/06/1995 P. 0023 - 0024

COMMISSION DIRECTIVE 95/15/EC of 31 May 1995 adapting Council Directive 89/647/EEC on a solvency ratio for credit institutions, as regards the technical definition of 'Zone A` and in respect of the weighting of asset items constituting claims carrying the explicit guarantee of the European Communities (Text with EEA relevance)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Directive 89/647/EEC of 18 December 1989 on a solvency ratio for credit institutions (1), as amended by Directive 92/30/EEC (2), and in particular Article 9 thereof,

Whereas the second indent of Article 2 (1) of Directive 89/647/EEC defines 'Zone A` as comprising 'all the Member States and all other countries which are full members of the Organization for Economic Cooperation and Development (OECD) as well as those countries having concluded special lending arrangements with the International Monetary Fund (IMF) associated with the Fund's General Arrangements to Borrow (GAB)`;

Whereas the full membership of the OECD has been considered for the time being as the most appropriate criterion to distinguish the credit risk between countries with regard to the weighting of asset items constituting claims on or carrying the explicit guarantee of these countries;

Whereas an enlargement of the number of full members of the OECD is taking place as a consequence of a higher level of development reached by other countries together with democratic and economic freedom in line with the general principles for membership of the OECD;

Whereas it is important from a prudential supervisory point of view to maintain the creditworthiness of all countries in the 'Zone A` category; whereas for this reason an additional criterion should be included in the definition of 'Zone A`; whereas this criterion should imply that any country which reschedules its external sovereign debt should be precluded from the 'Zone A` category for a period of five years; whereas the same additional...