1. WHERE A CREDIT INSTITUTION HAS A PARTICIPATION OF MORE THAN 50 % IN ANOTHER CREDIT INSTITUTION OR FINANCIAL INSTITUTION, THE RELEVANT MEMBER STATE OR THE COMPETENT AUTHORITIES FOR THAT CREDIT INSTITUTION SHALL, FOR THE PURPOSES OF SUPERVISION, REQUIRE EITHER FULL OR PRO RATA CONSOLIDATION OF THE FINANCIAL SITUATION OF THE INSTITUTIONS CONCERNED.
2. WHERE A CREDIT INSTITUTION HAS A PARTICIPATION OF 50 % OR LESS IN ANOTHER CREDIT OR FINANCIAL INSTITUTION AND, IN THE OPINION OF THE COMPETENT AUTHORITIES FOR THAT CREDIT INSTITUTION, A SITUATION OF EFFECTIVE CONTROL EXISTS, IT SHALL BE FOR THE RELEVANT MEMBER STATE OR COMPETENT AUTHORITIES TO DETERMINE THE METHOD OF CONSOLIDATION. PENDING FURTHER COORDINATION, HOWEVER, THE COMPETENT AUTHORITIES IN THE MEMBER STATE IN WHICH THE CREDIT INSTITUTION HAS ITS HEAD OFFICE AND THE COMPETENT AUTHORITIES FOR THE CREDIT OR FINANCIAL INSTITUTION IN WHICH IT HAS THE PARTICIPATION MAY AGREE THAT CONSOLIDATION OF SUCH A PARTICIPATION IS NOT REQUIRED IN SPECIFIED CASES.
3. WHERE A CREDIT INSTITUTION HAS A PARTICIPATION OF 50 % OR LESS IN ANOTHER CREDIT INSTITUTION OR IN A FINANCIAL INSTITUTION, AND A SITUATION OF EFFECTIVE CONTROL DOES NOT EXIST, IT SHALL BE FOR THE RELEVANT MEMBER STATE OR COMPETENT AUTHORITIES FOR THAT CREDIT INSTITUTION TO DETERMINE WHETHER AND HOW CONSOLIDATION IS TO BE EFFECTED. BEFORE EFFECTING SUCH CONSOLIDATION, THESE AUTHORITIES MUST INFORM THE COMPETENT AUTHORITIES FOR THE CREDIT OR FINANCIAL INSTITUTION IN WHICH THERE IS A PARTICIPATION.