FRANKFURT (AFX) - The Bundesbank and the German credit industry have criticised changes to European-wide bank transfers which are planned to pave the way for the Single Payment Area (SEPA), saying some of the EU's targets are over-ambitious, and could lead to over-regulation, reported the Financial Times Deutschland.
SEPA is scheduled to start in 2010, and is supposed to replace all national money transfer systems with a European-wide system using the same transaction fees and speeds.
'The transition to SEPA cannot be completed by 2010,' Georg Fabritius, member of the executive board of the Bundesbank said at a press conference yesterday, reported the newspaper.
Hubert Piel, who is with the Central Committee for Credit (ZKA), said the 'EU measures threaten to turn into a massive form of over-regulation which could ruin existing structures and processes that work well.'
He said the EU's goal of having transactions completed in one day is too ambitious. A three-day turnaround on such transactions would be possible, he added.
Currently, the turnaround on money transfers across Europe averages 6 days. Tyler.Sitte@afxnews.com ts/jfr COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
SEPA is scheduled to start in 2010, and is supposed to replace all national money transfer systems with a European-wide system using the same transaction fees and speeds.
'The transition to SEPA cannot be completed by 2010,' Georg Fabritius, member of the executive board of the Bundesbank said at a press conference yesterday, reported the newspaper.
Hubert Piel, who is with the Central Committee for Credit (ZKA), said the 'EU measures threaten to turn into a massive form of over-regulation which could ruin existing structures and processes that work well.'
He said the EU's goal of having transactions completed in one day is too ambitious. A three-day turnaround on such transactions would be possible, he added.
Currently, the turnaround on money transfers across Europe averages 6 days. Tyler.Sitte@afxnews.com ts/jfr COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
© 2006 AFX News
