1.A credit institution's own funds may not fall below the amount of initial capital required pursuant to Article 4 at the time of its authorization.
2.The Member States may decide that credit institutions already in existence when the Directive is implemented, the own funds of which do not attain the levels prescribed for initial capital in Article 4, may continue to carry on their activities. In that event, their own funds may not fall below the highest level reached after the date of the notification of this Directive.
3.If control of a credit institution falling within the category referred to in paragraph 2 is taken by a natural
or legal person other than the person who controlled
the institution previously, the own funds of that institution
must attain at least the level prescribed for initial capital in
Article 4.
4.However, in certain specific circumstances and with the consent of the competent authorities, where there is a merger of two or more credit institutions falling within the category referred to in paragraph 2, the own funds of the institution resulting from the merger may not fall below the total own funds of the merged institutions at the time of the merger, as long as the appropriate levels pursuant to Article 4 have not been attained.
5.However, if, in the cases referred to in paragraphs 1, 2 and 4, the own funds should be reduced, the competent authorities may, where the circumstances justify it, allow an institution a limited period in which to rectify its situation or cease its activities.