21 November 2013

ECB opinion on proposed Directive on basic bank accounts

The ECB submitted its opinion on the proposed Directive on the comparability of fees related to payment accounts, payment account switching and access to payment accounts with basic features.

The proposed Directive establishes a common Union framework for the protection of consumer rights related to access and use of payment accounts. This framework will comprise rules on all of the following: (a) the transparency and comparability of fees charged to consumers in connection with their payment accounts in the Union; (b) services for switching payment accounts provided by payment service providers to consumers; (c) the right of consumers legally resident in the Union to open and use a payment account with basic features in the Union irrespective of their nationality or Member State of residence; (d) related matters such as designation and duties of competent authorities and sanctions in the event of non-compliance by payment service providers.

General observations

The ECB strongly supports the proposed directive. Previously in other instances, the ECB has supported the imposition of specific transparency requirements for financial transactions, accompanied by effective monitoring of compliance with those requirements, to make it easier to compare different products and services and therefore to improve competition among financial actors. The ECB has also promoted setting standards as a means of facilitating the execution of cross-border payments. Finally, the proposed directive should give consumers easier access to payment accounts and contribute to the creation of a Union-wide payment area, a goal that the ECB has consistently supported.

Specific observations

Defined terms

The terms defined in the proposed directive should be aligned with those of Directive 2007/64/EC of the European Parliament and of the Council of 13 November 2007 on payment services in the internal market (hereinafter the ‘Payment Services Directive’ (PSD)) and Regulation (EU) No 260/2012 of the European Parliament and of the Council of 14 March 2012 establishing technical and business requirements for credit transfers and direct debits in euro (hereinafter the ‘SEPA Regulation’), unless there are objective reasons for departing from such defined terms. This concerns in particular the definitions of the terms ‘durable medium’ and ‘direct debit’. The use of standardised terminology based on existing Union legislation for payment services will improve consistency and facilitate the understanding of Union legal acts. In the interests of clarity and consistency, it also appears sensible to define ‘switching’ simply in terms of the services provided under Article 10 of the Directive.

List of covered services and powers of the authorities to obtain information

The list of basic payment services covered by the Directive should reflect payment services accounting for at least 80% of the most representative payment services subject to a fee at national level. However, more far reaching conditions mandating a certain number of services on such a list may prove excessive. Moreover, it should be clarified that the competent authorities are entitled to obtain information from payment service providers on the profitability of individual services provided in connection with payment accounts for the purpose of compiling the list of the most representative payment services. Specific reporting obligations may need to be established for this purpose, which should at the same time ensure the right of payment service providers to protect business secrets from their competitors.

Right to open a payment account with basic features – limitation in terms of currency of account

The proposed directive introduces a right for consumers legally resident in the Union to open and use a payment account with basic features in any Member State. However, the wording of Article 15 of the proposed directive might be understood to imply that payment service providers may be required on request to open a payment account with basic features denominated in any Member State currency. Given that the implementation of such a broad requirement may not be economically viable, it suffices to limit this right to open and use a payment account to payment accounts in the currency of the Member State where the payment service provider is located.

Cross-border cooperation

Finally, the proposed obligation on the competent national authorities within a Member State to cooperate to ensure effective compliance with the proposed directive should be expanded to include an obligation on competent authorities from different Member States to cooperate on a cross-border basis. This is to ensure that national implementation measures and practices do not diverge to an extent that jeopardises the proposed directive’s aim to approximate laws and measures to bring about a single market in payment account services within the Union.

Full opinion

© ECB - European Central Bank