Basic bank account for EU citizens: retaining effective national solutions

Transcription

1 Basic bank account for EU citizens: retaining effective national solutions Dirk Stein Brussels 25 January 2012 Public hearing Universal access to a basic payment account European Parliament

2 Overview Current account for everyone ( Girokonto für jedermann ) the 1995 recommendation of the German Banking Industry Committee (GBIC) Legitimate reasons for refusing customers a current account for everyone European Commission Recommendation on access to a basic payment account Requirements for European provisions on basic bank accounts Public Hearing Universal access to a basic payment account European Parliament, 25th January

3 Current account for everyone the 1995 recommendation of the German banking industry Banks recognise the social and economic significance of access to a bank account. Currently 2.5 million current accounts for everyone. Recommendation applies to a normal current account without overdraft facilities. Applies irrespective of the type and level of income, i.e. also covers citizens on unemployment/social security benefits. German credit bureau (SCHUFA) reports indicating difficult financial circumstances do not trigger rejection. Reasons for a rejection are provided in writing and customer is referred to the ombudsman responsible. Public Hearing Universal access to a basic payment account European Parliament, 25th January

4 Legitimate reasons for refusing customers a current account for everyone The bank s services are misused to carry out illegal transactions e.g. fraud, money laundering. The customer threatens or assaults staff or other customers. The customer provides false material information. It cannot be ensured that the bank will receive the contractually agreed fees for maintaining and using the current account. The customer otherwise fails to abide by the arrangements agreed. Public Hearing Universal access to a basic payment account European Parliament, 25th January

5 European Commission Recommendation on access to a basic payment account We support the principle that all EU citizens should have access to a current account and thus to cashless payment services. In most cases, the lack of an account is a personal choice of the consumer, not the result of a bank s refusal to provide one. A European Commission study found 99% of Germans had a current account the same level as in France and Belgium, where banks are required to offer a bank account by law.* So self-regulation as practised in Germany is an effective mechanism. *Study on the Costs and Benefits of Policy Actions in the Field of ensuring access to a Basic Bank Account, Centre of Strategy and Evaluation Services, Public Hearing Universal access to a basic payment account European Parliament, 25th January

6 Requirements for European provisions on basic bank accounts Functioning national solutions should be retained. Legitimate grounds for refusal applicable in Germany offer a sound basis for use at European level. Countries with low levels of account coverage should aim to reach the levels already attained in the top Member States. Number of mandatory services should be kept to a minimum. This will ensure a normal current account can be offered, thereby avoiding stigmatisation. Right to a basic account should be limited to the consumer s country of residence. Once SEPA migration is completed, one account in the EU will be sufficient. Serious reservations about specifying price levels. Suggestion: Fees for basic accounts should reflect those usually charged for current accounts in the Member State concerned. Public Hearing Universal access to a basic payment account European Parliament, 25th January

7 Thank you for your attention Association of German Banks Dirk Stein Public Hearing Universal access to a basic payment account European Parliament, 25th January