WRITTEN QUESTION No. 2718/97 by Susan WADDINGTON to the Commission. UK banking practice
Date: 1997-09-01
Institutions: European Parliament, WADDINGTON
Subjects: United Kingdom, application of EU law, bank, bank deposit, credit institution, equal treatment, foreign national, free movement of persons, real estate credit, residence

C 117/52

EN

Official Journal of the European Communities

16. 4. 98

This is without bearing on deduction of an amount, by way of an advance on the levy due from producers who
exceeded  their  individual  reference  quantity  for  that  period  in  accordance  with  Law  468/92  and  Regulation
(EC)  No  3950/92  establishing  an  additional  levy  in  the  milk  and  milk  products  sector (1).  The  Commission’s
information is that these amounts were systematically either deducted from payments to producers for their milk
or secured by bank guarantee.

In  the  circumstances  the  Commission  does  not  consider  that  the  producers  in  question  have  been

2.
discriminated against.

Before entry into force of the deferring provisions the sums paid by purchasers amounted to around 20% of
3.
the total due following the national redistribution exercise in December 1996. These sums relate to levy amounts
undisputed  by  purchasers  against  which  no  appeal  was  launched.  The  Commission  sees  no  reason  why  they
should be refunded.

The Commission regrets the delay in definitive recovery of the levy due for 1995/96 and 1996/97. The work of
the committee of inquiry will however enable problems in connection with the milk year bulletin such as those
raised by the Honourable Members to be avoided in future.

(1)  OJ L 405, 31.12.1992.

(98/C 117/64)

WRITTEN QUESTION E-2718/97

by Susan Waddington (PSE) to the Commission

(1 September 1997)

Subject: UK banking practice

Many UK banks and building societies do not accept European credit references, and refuse to open accounts for
people from other EU Member States, or UK nationals who have been resident in another Member State. Such
barriers continue to hamper the mobility of European Union citizens.

How does the Commission view such practices, are they legal, and will it take action to remove such barriers in
the near future?

Answer given by Mr Monti on behalf of the Commission

(7 October 1997)

The  Commission  is  aware  that  some  UK  banks  and  building  societies  are  reluctant  to  accept  customers  not
resident in the United Kingdom. According to the information available to the Commission, it would appear that
this reluctance on the part of a minority of credit institutions is based on the costs involved in meeting the legal
and tax obligations associated with non-resident customers. These credit institutions take the view that, given the
circumstances, it is not worthwhile for them to have non-resident customers.

Although the Commission’s view is that these practices are regrettable in the context of the internal market and in
the run-up to the single currency, they are not incompatible with Community law. Under current Community
law, there is no obligation on banks to accept a customer or to provide a given service, such as opening a bank
account, irrespective of whether the customer is resident in the country. This is a choice made on commercial
grounds and based on the legal principle of contractual freedom.

As it stated in its Communication of 26 June 1997 on follow-up to the Green Paper entitled (cid:145)Financial Services:
Meeting Consumers(cid:146) Expectations(cid:146) (1), the Commission supports all initiatives taken at national level to improve
access by the greatest possible number of Community nationals to basic banking services. Although studies are
currently being carried out on access to banking services, the Commission does not, at present, envisage taking
measures in this area at Community level.

(1)  COM(97) 309 final.