For the purposes of this Directive:
credit institution shall mean a credit institution as defined in the first indent of Article 1 of Directive 77/780/EEC, including such a credit institution's branches in third countries, and any private or public undertaking, including its branches, which satisfies the definition in the first indent of Article 1 of Directive 77/780/EEC and which has been authorized in a third country
competent authorities shall mean the competent authorities as defined in the ninth indent of Article 1 of Council Directive 92/30/EEC of 6 April 1992 on the supervision of credit institutions on a consolidated basis (11)
parent undertaking shall mean a parent undertaking as defined in the seventh indent of Article 1 of Directive 92/30/EEC
subsidiary undertaking shall mean a subsidiary undertaking as defined in the eighth indent of Article 1 of Directive 92/30/EEC
financial holding company shall mean a financial holding company as defined in the third indent of Article 1 of Directive 92/30/EEC
financial institution shall mean a financial institution as defined in the second indent of Article 1 of Directive 92/30/EEC
ancillary banking-services undertaking shall mean an undertaking as defined in the fifth indent of Article 1 of Directive 92/30/EEC
exposures shall mean the assets and off-balance-sheet items referred to in Article 6 of Directive 89/647/EEC and in Annexes I and III thereto, without application of the weightings or degrees of risk there provided for; the risks referred to in the aforementioned Annex III must be calculated in accordance with one of the methods set out in Annex II to that Directive, without application of the weightings for counter-party risk; all elements entirely covered by own funds may, with the agreement of the competent authorities, be excluded from the definition of exposures provided that such own funds are not included in the calculation of the solvency ratio or of other monitoring ratios provided for in Community acts; exposures shall not include:
- in the case of foreign exchange transactions, exposures incurred in the ordinary course of settlement during the 48 hours following payment, or
- in the case of transactions for the purchase or sale of securities, exposures incurred in the ordinary course of settlement during the five working days following payment or delivery of the securities, whichever is the earlier;
Zone A shall mean the zone referred to in the second indent of Article 2 (1) of Directive 89/647/EEC
Zone B shall mean the zone referred to in the third indent of Article 2 (1) of Directive 89/647/EEC
own funds shall mean the own funds of a credit institution as defined in Directive 89/299/EEC
control shall mean the relationship between a parent undertaking and a subsidiary, as defined in Article 1 of Directive 83/349/EEC, or a similar relationship between any natural or legal person and an undertaking
group of connected clients shall mean:
- two or more natural or legal persons who, unless it is shown otherwise, constitute a single risk because one of them, directly or indirectly, has control over the other or others, or
- two or more natural or legal persons between whom there is no relationship of control as defined in the first indent but who are to be regarded as constituting a single risk because they are so interconnected that, if one of them were to experience financial problems, the other or all of the others would be likely to encounter repayment difficulties.