Banking Co-ordination Directive (BCD)

The second banking coodination directive (from 1 January 1993) established the principle of the single licence allowing banks and other credit institutions to set up branches and offer services throughout the Community; it contains a list of banking services that can be provided in all the Member States on the basis of such a licence. The Directive requires banks to have a minimum level of capital, and it lays down prudential rules covering, for example, qualifying holdings, sound administrative and accounting procedure, and adequate internal control.