1. Article 39 of Directive 78/660/EEC shall apply to the valuation of credit institutions' loans and advances, debt securities, shares and other variable-yield securities which are not held as financial fixed assets.

2. Pending subsequent coordination, however, the Member States may permit:

(a) loans and advances to credit institutions and customers (Assets items 3 and 4) and debt securities, shares and other variable-yield securities included in Assets items 5 and 6 which are neither held as financial fixed assets as defined in Article 35(2) not included in a trading portfolio to be shown at a value lower than that which would result from the application of Article 39(1) of Directive 78/660/EEC, where that is required by the prudence dictated by the particular risks associated with banking. Nevertheless, the difference between the two values must not be more than 4% of the total amount of the assets mentioned above after application of the aforementioned Article 39;

(b) that the lower value resulting from the application of subparagraph (a) be maintained until the credit institution decides to adjust it;

(c) where a Member State exercises the option provided for in subparagraph (a), neither Article 36(1) of this Directive nor Article 40(2) of Directive 78/660/EEC shall apply.