1.´credit institution' shall mean a credit institution as defined in the first indent of Article 1 of Directive 77/780/EEC;
2.´authorization' shall mean authorization as defined
in the second indent of Article 1 of Directive 77/780/EEC;
3.´branch' shall mean a place of business which forms a legally dependent part of a credit institution and which carries out directly all or some of the transactions inherent in the business of credit institutions; any number of places of business set up in the same Member State by a credit institution with headquarters in another Member State shall be regarded as a single branch;
4.´own funds' shall mean own funds as defined in Directive 89/299/EEC;
5.´competent authorities' shall mean competent authorities as defined in Article 1 of Directive 83/350/EEC;
6.´financial institution' shall mean an undertaking other than a credit institution the principal activity of which is to acquire holdings or to carry on one or more of the activities listed in points 2 to 12 in the Annex;
7.´home Member State' shall mean the Member State in which a credit institution has been authorized in accordance with Article 3 of Directive 77/780/EEC;
8.´host Member State' shall mean the Member State in which a credit institution has a branch or in which it provides services;
9.´control' shall mean the relationship between a parent undertaking and a subsidiary, as defined in Article 1 of Directive 83/349/EEC (13), or a similar relationship between any natural or legal person and an undertaking;
10.´qualifying holding' shall mean a direct or indirect holding in an undertaking which represents 10 % or more of the capital or of the voting rights or which makes it possible to exercise a significant influence over the management of the undertaking in which a holding subsists.
For the purposes of this definition, in the context of Articles 5 and 11 and of the other levels of holding referred to in Article 11, the voting rights referred to in Article 7 of Directive 88/627/EEC (14) shall be taken into consideration;
11.´initial capital' shall mean capital as defined in Article 2 (1) (1) and (2) of Directive 89/299/EEC;
12.´parent undertaking' shall mean a parent undertaking
as defined in Articles 1 and 2 of Directive 83/
349/EEC;
13.´subsidiary' shall mean a subsidiary undertaking as defined in Articles 1 and 2 of Directive 83/349/EEC;
any subsidiary of a subsidiary undertaking shall also be regarded as a subsidiary of the parent undertaking which is at the head of those undertakings;
14.´solvency ratio' shall mean the solvency coefficient of credit institutions calculated in accordance with Directive 89/647/EEC (15).