access to the national markets is ensured, and highlights some of the problems financial institutions are faced with when providing border crossing activities. The freedom to provide services and the right of establishment constitute the legal foundations of the Community's banking legislation. It is examined how the interrelationship between these fundamental economic freedoms and the Second Banking Directive works in practice, and more particularly whether the Directive fulfills its own aim - to grant an unconditional market access. The Community's banking legislation is applicable to both credit institutions authorized in a Member State and those authorized in third countries. The author concludes, that the Second Banking Directive violates not only parts of Community law, but also existing international agreements, most notably agreements concluded between the U.S.A. and the Member States of the Community.