European Banking Industry Committee

European Banking Industry Committee
European Banking Federation (EBF) European Savings Banks Group (ESBG) European Association of Cooperative Banks (EACB)
European Mortgage Federation (EMF) European Federation of Building Societies (EFBS)
European Federation of Finance House Associations (Eurofinas)/European Federation of Leasing Company Associations (Leaseurope)
European Association of Public Banks (EAPB)
Press Release
EBIC launches Self-regulatory Initiative for Bank Account Switching
The European Banking Industry Committee (EBIC) published today its initiative for self-regulation
on bank account switching. The proposed rules on banks’ conduct for domestic personal current
account switching are a notable success for industry and policy makers alike. Facilitating mobility not
only benefits in concrete terms European consumers wishing to switch bank account; it also reflects
the general commitment of the banking industry to competition.
The banking industry’s initiative reaches back to early 2008, when the European Commission requested the
European banking industry to develop a self-regulatory approach to facilitate customer mobility within
Member States. EBIC followed the Commission’s request and established a working group composed of
banking industry experts from a wide range of Member States.
The EBIC working group has developed a set of Common Principles which, on a European level, establish a
common standard for banks’ conduct as regards personal current account switching within Member States.
This unprecedented initiative is compatible with different market conditions in the 27 Member States as well as
with already existing self-regulatory arrangements. The European banking industry emphasizes the progress
made in particular in view of those markets where, at the current stage, there are neither switching
arrangements at national level nor own initiative provisions by individual banks. EBIC is also pleased to state
that throughout the work process on the Common Principles the banking industry maintained an open and
fruitful dialogue with the European Commission.
The banking industry is confident that consumers will benefit from EBIC’s Common Principles as soon as they
are implemented in November 2009. Implementation and effect of the self-regulation in the different Member
States shall be monitored in a review process.
Key elements of the Common Principles:
The Common Principles ensure that bank account switching is not onerous to consumers and that their
mobility shall not be constrained by any unnecessary delay or cost, or by a lack of support from their banks.
The Common Principles also increase consumers’ awareness of the switching-related services they can expect,
and aim at reducing consumers’ apprehensions with respect to bank account switching.
The Common Principles lay out that:
- Banks will provide consumers who want to switch current account with clear and complete
information.
- ‘New’ and ‘former’ banks commit to facilitating smooth and timely switching, notably as regards
recurrent incoming and outgoing payments related to a current account. Conditional on the
involvement of third parties, ‘new’ and ‘former’ banks commit to completing their assigned tasks within