1. Single licence in the banking market

2. All restrictions on freedom of establishment and freedom to provide services in respect of self-employed activities of banks and other financial institutions have been abolished since the 1970. The right of access is based on the mutual recognition of supervision systems, i.e. application of the principle of supervision of a credit institution by the Member State in which it has its head office, and the issue of a "single bank licence" which is valid throughout the European Union. The single licence authorises a bank established in a Member State to open branches without any other formalities or to propose its services in the partner countries. The principle of reciprocity governs the opening in the EU of subsidiaries of banks from non-member countries.

3. Directive 2006/48 permits the supervision of credit institutions on a consolidated basis. It defines the object of supervision, consolidation methods and the sharing of responsibilities between Member States for the monitoring of multinational groups, particularly financial companies whose main activity is the holding of interests in credit establishments or other financial establishments. The object of supervision is solvency, the match between own funds and risks and non-financial interests.

4. On the other hand, Directive 2006/48 seeks to ensure that the Member States control excessive concentrations of exposures to a single client, thus avoiding losses that might threaten the solvency of a credit institution and have repercussions on the entire financial system. In the European internal market, the transparency, performance and stability of cross-border payment systems should match the properties of the best domestic payment systems. To this effect, a Directive harmonises the legal frame of payment services in the EU, including the conditions of information as well as the rights and obligations of the parts and purports to develop the infrastructures, procedures, common rules and standards needed for a pan-European payment system.

5. A clear regulatory framework for electronic money in the single market aims to enhance business and consumer confidence in this new form of payment, while ensuring that equal competitive conditions prevail for traditional credit institutions and other companies which issue electronic money. Electronic money institutions are included within the general scope of the provisions of the banking coordination directives.

6. The administrative or judicial authorities of the home Member State are alone empowered to decide on the implementation of one or more reorganisation measures in a credit institution, including branches established in other Member States.

7. Question What directive provides a single banking license?