No L 110/52 Official Journal of the European Communities 28. 4. 92 ~ (Acts whose publication is not obligatory) COUNCIL COUNCIL DIRECTIVE 92/30/EEC of 6 April 1992 on the supervision of credit institutions on a consolidated basis THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, and in particular the first and third sentences of Article 57 (2) thereof, Having regard to the proposal from the Commission, In cooperation with the European Parliament (*), Having regard to the opinion of the Economic and Social Committee (%), Whereas Council Directive 83/350/EEC of 13 June 1983 on the supervision of credit institutions on a consolidated basis (*) established the necessary framework for the intro- duction of supervision of credit institutions on a consoli- dated basis ; whereas, following the transposition of that Directive into the national law of the Member States, the principle of supervision on a consolidated basis is now applied throughout the Community ; Whereas, in order to be effective, supervision on a conso- lidated basis must be applied to all banking groups, inclu- ding those the parent undertakings of which are not credit institutions; whereas the competent authorities must hold the necessary legal instruments to be able to exercise such supervision ; Whereas, in the case of groups with diversified activities the parent undertakings of which control at least one credit institution subsidiary, the competent authorities must be able to assess the financial situation of a credit institution in such a group ; whereas, pending subsequent coordination, the Member States may lay down appro- priate methods of consolidation for the achievement of (') OJ No C 326, 16. 12. 1991, p. 106, and O] No C 94, 13. 4. 1992 (@) O] No C 102, 18. 4. 1991, p. 19. () OJ No L 193, 18. 7. 1983, p. 18. the objective of this Directive ; whereas the competent authorities must at least have the means of obtaining from all undertakings within a group the information necessary for the performance of their function ; whereas coopera- tion between the authorities responsible for the supervi- sion of different financial sectors must be established in the case of groups of undertakings carrying on a range of financial activities ; Whereas rules limiting the risks taken by a credit institu- tion on the mixed-activity holding company of which it is a subsidiary, as well as those taken on the other subsidia- ries of the same mixed-activity holding company, can be particularly useful ; whereas it would, however, appear to be preferable to settle this question in a more systematic manner in the framework of a future Directive on the limitation of large exposures ; Whereas the Member States can, furthermore, refuse or withdraw banking authorization in the case of certain group structures considered inappropriate for carrying on banking activities, in particular because such structures could not -be supervised effectively; whereas in this respect the competent authorities have the powers mentioned in Article 8 (1) (c) of the First Council Direc- tive (77/780/EEC) of 12 December 1977 on the coordina- tion of the laws, regulations and administrative provisions relating to the taking up and pursuit of the business of credit institutions (¥} and in Articles 5 and 11 of the Second Council Directive (89/646/EEC) of 15 December 1989 on the coordination of laws, regulations and admi- nistrative provisions relating to the taking up and pursuit of the business of credit institutions (%), in order to ensure the sound and prudent management of credit institu- tions ; () OJ No L 322, 17. 12. 1977, p. 30. Directive as last amended by Directive 89/646/EEC (O] No L 386, 30. 12. 1989, p. 1). () OJ No L 386, 30. 12. 1989, p. 1.