1. ANY CREDIT INSTITUTION WHICH HAS A PARTICIPATION IN ANOTHER CREDIT OR FINANCIAL INSTITUTION SHALL BE SUBJECT, TO THE EXTENT AND IN THE MANNER REQUIRED BY ARTICLE 4, TO SUPERVISION ON THE BASIS OF THE CONSOLIDATION OF ITS FINANCIAL SITUATION WITH THAT OF THE INSTITUTION IN WHICH IT HAS SUCH PARTICIPATION.
2. HOWEVER, MEMBER STATES OR THE COMPETENT AUTHORITIES MAY FORGO SUPERVISION ON A CONSOLIDATED BASIS:
- IF AT LEAST 75 % OF THE ACTIVITIES OF THE CREDIT INSTITUTION WHICH HAS THE PARTICIPATION ARE ALREADY CONSOLIDATED WITH THOSE OF ANOTHER CREDIT INSTITUTION WHICH IS ITSELF SUBJECT TO SUPERVISION ON A CONSOLIDATED BASIS BY THE COMPETENT AUTHORITIES OF ONE OF THE MEMBER STATES AND THE CREDIT INSTITUTION IN WHICH IT HAS THE PARTICIPATION IS INCLUDED IN THIS SUPERVISION ON A CONSOLIDATED BASIS, OR
- IF THE CREDIT INSTITUTION OR FINANCIAL INSTITUTION IN WHICH THERE IS A PARTICIPATION IS SITUATED IN A NON-MEMBER COUNTRY WHERE THERE ARE LEGAL IMPEDIMENTS TO THE TRANSFER OF THE NECESSARY INFORMATION, OR
- IF THE TOTAL BALANCE SHEET OF THE CREDIT OR FINANCIAL INSTITUTION IN WHICH THERE IS A PARTICIPATION REPRESENTS LESS THAN THE LESSER OF THE FOLLOWING TWO AMOUNTS: 2 % OF THE TOTAL BALANCE SHEET OF THE CREDIT INSTITUTION WHICH HAS THE PARTICIPATION OR 10 MILLION ECU, OR
- IF THE NATURE OF THE BUSINESS OF THE CREDIT INSTITUTION OR FINANCIAL INSTITUTION IN WHICH THERE IS A PARTICIPATION IS SUCH THAT, IN THE OPINION OF THE MEMBER STATE CONCERNED OR THE COMPETENT AUTHORITIES FOR THE CREDIT INSTITUTION WHICH HAS THE PARTICIPATION, CONSOLIDATION OF ITS FINANCIAL SITUATION WOULD BE INAPPROPRIATE OR MISLEADING.
3. SUPERVISION ON A CONSOLIDATED BASIS SHALL BE EXERCISED BY THE COMPETENT AUTHORITIES OF THE COUNTRY IN WHICH THE CREDIT INSTITUTION WHICH HAS THE PARTICIPATION HAS ITS HEAD OFFICE AND, PENDING SUBSEQUENT COORDINATION, AND EXCEPT AS OTHERWISE PROVIDED IN THIS DIRECTIVE, SUPERVISION SHALL BE CARRIED OUT ACCORDING TO THE NATIONAL PROCEDURE APPLICABLE IN THAT COUNTRY.
4. SUCH SUPERVISION SHALL TAKE PLACE AT LEAST ONCE A YEAR AND SHALL BE WITHOUT PREJUDICE TO SUPERVISION ON AN UNCONSOLIDATED BASIS OR TO SUPERVISION CARRIED OUT BY THE COMPETENT AUTHORITIES OF OTHER MEMBER STATES.