Brussels, 02/03/2007 (Agence Europe) - Three pan-European banking associations, the European Banking Federation (EBF), the European Savings Banks Group (ESBG) and the European Association of Cooperative Banks (EACB) have expressed 'strong support' for the European Central Bank (ECB)'s Target2Securities (T2S) programme, noting in a press release that T2S would bring 'substantial benefits to the market as a whole and to banks as users of settlement services'. T2S would establish a single entry point or platform for the settlement of securities, ensuring a more secure post-trading market through extensive use of central bank money. European finance ministers made positive but prudent noises about T2S earlier in the week (see EUROPE 9372).
According to the banking industry, the ECB's programme would 'materialise in important efficiency gains for the European market and ultimately cost-savings for banks and their clients… Broad efficiency gains, a strong push in the efforts to harmonise clearing and settlement processes within Europe and last but not least, a more secure post-trading market through extensive use of central bank money are further potential benefits identified by Europe's banks.' The banks want the ECB to take account of several important principles, establishing 'a fully transparent consultative process with stakeholders'; allowing 'direct access to T2S for banks'; and ensuring T2S 'constitutes an attractive and competitive service offer… that will ensure an efficient settlement service at price levels that are lower than the competitive current fees for domestic settlement transactions.' (mb)