Brussels, 18/11/2005 (Agence Europe) - The WSBI (World Savings Banks Institute) and the ESBG (European Savings Banks Group) -two international banking associations based in Belgium- held the first EU/United States forum on the retail banking markets in Brussels on 14 and 15 November, with a particular view to discussing the implementation of a single payment system within the EU by 2010. The key players on the European banking stage are not sufficiently aware of the advantages of such a system, according to the European Commission, which is due to present proposed directive on 1 December to establish a legal framework and remove obstacles subsisting between the Member States in order to create a single payment area in euros within the internal market.
During the debates, Norbert Bielefeld, speaking on behalf of the WSBI-ESBG, raised the question: "what is the objective of a single payment system?". Such a system should "allow a client to make and receive payments anywhere, just as easily as in the country he or she lives in", he explained. David Deacon, of Directorate General Internal Market of the European Commission said, however, that in Europe, there is a "failure on the part of the banking markets to implement a single payment area", which is due mainly to fears about the costs of implementing the system. He feels that industry is not aware of the "advantages this kind of system could bring to all those involved in the market". In the view of Dennis Beau, of the European Central Bank (ECB), "the problem is striking the right balance between competition and cooperation". This raises several challenges, including a clarification of objectives and drafting a regulatory environment. It is up to the Commission to suggest a well-defined legal framework, said Dennis Beau.
Presenting a historical overview of the American banking system, Governor Mark Olson of the Federal Reserve, the central bank of America, stressed the fact that the European Union and the United States have seen different developments in their payment systems, but that they both have a lot to learn from each other. He added that the United States have moved gradually towards a single payment system, largely at the behest of the private sector. "Both sectors (public and private) have committed towards technological innovation and the development of a payment infrastructure", said Mark Olson, adding: "we will continue to evolve", "markets move forward, legislation follows; there is no destination, just a journey". In the view of GertrudeTumpel-Gugerell, a board member of the ECB, there is not a one single payment area in Europe today, but twenty-five. However, she added, the single payment area in Europe "is an investment for the future", not just for internal reasons, but also "to make Europe more competitive". Much remains to be done, such as "making direct pension systems more attractive for users", or improving the infrastructure of markets in terms of openness of access, transparency and interoperability, between now and 2010. Ms Tumpel-Gugerell went on to acknowledge that the EU has an enormous amount to "learn from the experience of America, particularly in terms of financial integration and the consolidation of payment infrastructures ".
Chris De Noose, of the management committee of the WSBI-ESBG, said that both the EU and the United States have lessons to learn from their respective experiences. The main objectives for both market systems to pursue are very similar, although certain rules remain different. The services of the WSBI and the ESBG are soon to publish a comparative study of the American and European retail banking markets, in order to learn from their similarities and differences.
The establishment of a single payment area in euros (Single Euro Payments Area - SEPA) between now and 2010 has become one of the key objectives for the European banking industry. Last July, Commissioner McCreevy expressed his dissatisfaction on delays in the implementation of the roadmap of the European Payments Council (EPC): (see EUROPE 8995), and expressed his hope is that the Commission will present a proposed directive on payments before the end of the year.