WRITTEN QUESTION No. 1187/98 by Richard CORBETT to the Commission. Effect of US bank holidays on intra-EU bank transfers
Date: 1998-04-29
Institutions: CORBETT, European Parliament
Subjects: European Union, United States, application of EU law, credit transfer, financial transaction, national implementing measure, public holiday

5.2.1999

EN

Official Journal of the European Communities

C 31/21

(1999/C 31/024)

WRITTEN QUESTION E-1187/98

by Richard Corbett (PSE) to the Commission

(29 April 1998)

Subject: Effect of US bank holidays on intra-EU bank transfers

Is the Commission aware that certain commercial banks in the UK do not credit sums transferred from another
Member State to their customer(cid:146)s account on the day after receipt of such funds, as is normal practice, when such
days coincide with a bank holiday in the United States of America? In such cases, the money, which is already in
the possession of the bank, is only credited to the customer on the first working day after the American bank
holiday (which, in the event of weekends and UK holidays, may actually be several days later).

Does the Commission agree that the transfer of funds from one Member State of the Union to another should not
be affected by a bank holiday in a third country?

If not, how does it justify such a situation?

Will it change when the euro is introduced?

Answer given by Mr Monti on behalf of the Commission

(13 July 1998)

On 27 January 1997, the Parliament and the Council adopted Directive 97/5/EC on cross-border credit
transfers (1). The Directive will apply to cross-border credit transfers up to ECU 50.000 (and hence EUR
50.000 from 1 January 1999) and the equivalent sum in the national currencies of the Member States. It will enter
into force on 14 August 1999, but Member States have promised best efforts to anticipate this to 1 January 1999.

Article 6 of the Directive requires an institution to execute a credit transfer within the time scale agreed with its
customer. In the absence of such an agreement, default time scales are set out, stipulating, inter alia, that funds are
to be made available to the beneficiary not later than the banking business day following the day on which the
funds were credited to the account of the beneficiary(cid:146)s institution (Article 6, paragraph 1, 2nd sentence of the
Directive). This means, that in the case mentioned by the Honourable Member, British banks, unless they agree
otherwise with their customers, should make funds available to the beneficiary on the day following receipt of
funds in the context of a transfer. While the term (cid:145)banking business day(cid:146) is not defined in the Directive, the
Commission takes the view that it should be determined with reference to regulations or practices regarding
banking holidays in the country where the receiving bank is located. In the circumstances described by the
Honourable Member this would mean that British holiday rules should apply and that American bank holidays
should not enter into account. This, however, will not immediately settle the question raised by the Honourable
Member as the transposition period of Directive 97/5/EC (14 August 1999) has not yet expired. However, the
Member States have promised their best endeavours to implement the Directive by 1 January 1999 and the
Commission will make efforts to achieve the earliest possible transposition.

(1) OJ L 43, 14.2.1997.

(1999/C 31/025)

WRITTEN QUESTION E-1190/98

by John Cushnahan (PPE) to the Commission

(29 April 1998)

Subject: Internet gambling

Does the Commission have any plans to regulate gambling via the Internet? What are the scope and potential
outcomes of these regulations?