WRITTEN QUESTION E-2963/00

by Daniela Raschhofer (NI) to the Commission

(20 September 2000)

Subject: Time taken by bank transfers

Although, since the introduction of the euro, national currencies are now only sub-units of the Community currency, bank transfers both at national level and within the EU still take several days. It is incomprehensible in the age of on-line transactions why bank customers should have to wait several days to be credited with transfers while the banks are reaping the resulting not inconsiderable profits both from interest received and interest saved.

In its answers to Written Questions E-0109/99 of 29 March 1999(1) and P-3864/98 of 28 January 1999(2), the Commission emphasised the need to achieve improvements in this area.

The central banks in the Member States have in the meantime gone over to real-time transfers.

Will the Commission state:

- whether since then specific improvements have been made and/or when they will be made?

- when real-time transfers for customers of the commercial banks will be introduced?

- how much money is not credited to consumers through loss of interest?

- how large are the gains of the banks from possible interest payments?

- whether this practice possibly represents a kind of cartel (concerted behaviour)?

- whether an efficient and economic solution for customers is being worked on in connection with various projects such as e-europe?

(1) OJ C 348, 3.12.1999, p. 22.

(2) OJ C 182, 28.6.1999, p. 130.

Answer given by Mr Bolkestein on behalf of the Commission

(26 October 2000)

The Commission has explained on numerous occasions that the introduction of the euro per se would not have the mechanical effect of substantially reducing the cost of cross-border transfers and would not reduce the time they take, mainly because the necessary infrastructure is not available. In its Communication of 31 January 2000 on retail payments in the internal market(1), the Commission urges banks to improve the structures used to process small value cross-border payments. Several initiatives have been launched, such as the establishment of the IBAN (International Bank Account Number) or IPI (International Payment Instruction) and the setting-up of a system for processing small value transfers (STEP 1). The Commission is working to promote a significant improvement in the situation by 1 January 2002.

Directive 97/5/EC on cross-border credit transfers(2) states that transfers must be completed within six days. A study carried out for the Commission on 100 transfers, which was published in April 2000, indicates that the average duration was 3,4 days but that just over 4 % of transactions took more than six days. The Commission is concerned about this failure to comply with the Directive, and has asked the Member States for explanations.

The other questions are based on the assumption that transactions are effected in real time. As far as cross-border transfers are concerned, this is possible in certain exceptional cases but it is not the general rule. It is estimated that 90 % of transactions still require manual intervention at some point or other. All the initiatives currently under way are designed to make these transactions completely automatic.

Lastly, the Honourable Member raises the issue of value dates. The Commission takes the view that these arrangements are an element of competition and that therefore the customer should be informed of them. It does not have any information on interest losses or gains as a result of this mechanism. If credit institutions have agreed between themselves to apply the same value dates, this may constitute an infringement of Community competition rules.

(1) COM(2000) 36 final.

(2) OJ L 43, 14.2.1997.