30.12. 89 ~ Official Journal of the European Communities No L 386/1 (Acts whose publicétion is not obligatory) COUNCIL ’ SECOND COUNCIL DIRECTIVE of 15 December 1989 on the coordination of laws, regulations and administrative provisions relating to the taking up and pursuit of the business of credit institutions and amending Directive 77/780/EEC (89/646/EEC) / THE COUNCIL 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 (1), In cooperation with the European Parliament (2), Having regard to the opinion of the Economic and Social Committee (3), Whereas this Directive is to constitute the essential. instrument for the achievement of the internal market, a course determined by the Single European Act and set out in timetable form in the Commission’s White Paper, from the point of view of both the freedom of establishment and the freedom to provide financial services, in the field of credit institutions; Whereas this Directive will join the body of Cofnmunity legislation already enacted, in particular the first Council . Directive 77/780/EEC of 12 December 1977 on the coordination' of laws, regulations and administrative . provisions relating to the taking up and -pursuit of the business of credit institutions (), as last amended by Directive 86/524/EEC (%), Council Directive 83/350/EEC of 13 June 1983 on the supervision of credit institutions on a consolidated basis (¢), Council Directive 86/635/EEC of 8 December 1986 on the annual and consolidated accounts () O] No C 84, 31.3.1988,p. 1. - (2) OJ NoC 96, 17. 4. 1989, p. 33 and Decision of 22 November 1989 (not yet published in the Official Journal). (3) OJ No C 318, 17. 12, 1988, p. 42. (*) OJ NoL 322,17.12.1977, p. 30. (*) OJ No L 309, 4. 11. 1986, p. 15. (¢) OJ No L 193, 18. 7. 1983, p. 18. of banks and other financial instifutions () and Council Directive 89/299/EEC of 17 April 1989 on the own funds of credit institutions (8); Whereas the Commission has- adopted recommendations 87/62/EEC on large exposures of credit institutions (°) and 87/63/EEC concerning the introduction of deposit- guarantee schémes (1°); ' Whereas the approach which has been adopted is to achieve only the essential harmonization necessary and sufficient to secure the mutual recognition of authorization and - of “prudential supervision systems, making possible the granting of a single licence recognized throughout the Community and the application of the principle of home Member State prudential supervision; Whereas, in this context, this Directive can be implemented only simultaneously with specific Community legislation dealing with the additional harmonization of technical matters relating to own funds and solvency ratios; Whereas, moreover, the harmonization of the conditions- relating to the reorganization and winding-up of credit institutions is also proceeding; Whereas the arrangements necessary for-the supervision of the liquidity, market, interest-rate and foreign-exchange - risks run by credit institutions will also have to. be " harmonized; Whereas the principles of mutual recognition and of home Member State control require the competent authorities of (7) OJ No L 372, 31.12. 1986, p. 1. (*) OJ NoL 124, 5. 5. 1989, p. 16. - (*) OJ No L 33, 4. 2. 1987, p. 10. (1) O] No L 33, 4. 2. 1987, p. 16.