1. The coordination measures prescribed by this Directive shall apply to branches established in a Member State by credit institutions and financial institutions within the meaning of Article 2(1)(a) and (b) of Directive 86/635/EEC having their head offices outside that Member State. Where a credit institution or financial institution has its head office in a non-member country, this Directive shall apply in so far as the credit institution or financial institution has a legal form which is comparable to the legal forms specified in the above-mentioned Article 2(1)(a) and (b).

2. The third indent of Article 1 of Directive 77/780/EEC [OJ No L 322, 17. 12. 1977, p. 30.] shall apply mutatis mutandis to branches of credit institutions and financial institutions covered by this Directive.