The European Payments Council (EPC) (in German rarely also European exchange committee) a mechanism of the credit institutes is in the European union. Avowed purpose of the EPC is the realization as single euro Payments AREA (SEPA) of the designated uniform euro-exchange area.

Political background and developing history

In the contract of Maastricht from 7 February 1992 the creation of the European economic and monetary union (EWWU) was agreed upon. Principal item of the contract was the introduction of the euro as legal tender in the participant countries to 1 January 1999 as book and to 1 January 2002 as cash. In connection with the preparations for the euro introduction the European parliament issued a guideline on 27 January 1997 over transnational transfers. This guideline aimed off to improve "the bank services within the range of the transnational transfers and increase their efficiency." In a report of the European commission to the European parliament and the advice of the European union from 31 January 2001 over the improvement of the services in the transnational exchange it was among other things stated that the European Union guideline of 1997 had not reached its objective. Therefore the European commission and the advice on 19 December 2001 the European Union price regulation issued. Herein a standardization of the prices between the inland exchange and the exchange was specified on the whole in euro. This regulation was implemented against the resistance of the European banks. The order-political argument of the banks that this regulation represents contradicting interference to the free market principles into the free price structuring, was not considered above all, because the standardization on freiwilliger basis had not obtained recognizable progress.

In order to prevent further regulations of the legislator in this area, it was necessary to create for the activities of the European banks for the standardization and improvement of the mass exchange within the European union an institutional framework. Under leadership of the European bank federations became to 25. and 26. March 2002 a Workshop accomplished in Brussels, in which beside the federations also 42 European major banks participated. On basis this Workshops was furnished in the summer 2002 the European Payments Council.

Objective

A priority goal is the implementation as single euro Payments AREA (SEPA) of the designated uniform euro-exchange area, which is to be carried out in the context of the self adjustment without interference of the legislator. This objective was summarized in a "White Paper in such a way specified".

Organization

The European Payments Council is a Non profit combination ("international combination without realization of profits intention") of Belgian right. Seat is Brussels. Members of the EPC are banks and bank federations from the member countries of the European union, Switzerland, Iceland, Norway and Liechtenstein. At present it covers 64 members from 27 European countries. The number of seats of the individual countries depends on the number of exchange transactions of the respective country. Seats are maximum intended per country sieve. Members from Germany are at present Bayerische Landesbank, the Federal association of German banks, the Federal association of the German people banks and Raiffeisen banks, Deutsche Bank, the German savings bank and Giroverband, the DZ bank and the WestLB.

Decision-making body is the EPC plenum. Besides there is the co-ordination committee, which coordinates the following working groups:

• Legally support Group
• Electronics Credit transfer ("SEPA transfer")
• Electronics Direct debit ("SEPA debit")
• Cash
• Cards
• OITS standard support Group ("operation, Infrastructure and Technology standard")

Conversion timetable

In December 2004 the EPC has the "Roadmap 2004 - 2010" decided. A priority goal is in it the development of the three new European payment instruments SEPA transfer ("SEPA Credit transfer"), SEPA debit ("SEPA Direct debit") and debit map payment. Parallel for this a uniform data format and basic conditions for the clearing and the Settlement are developed. The new payment instruments are to be offered the final customers starting from 1 January 2008 first for the transnational exchange.

Related links

• www.europeanpaymentscouncil.org
• SEPA and EPC on www.zahlungsverkehrsfragen.de

Articles in category "European Payments Council"

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