Table Of ContentPalgrave Macmillan Studies in Banking and Financial Institutions
Series Editor: Professor Philip Molyneux
The Palgrave Macmillan Studies in Banking and Financial Institutions are international
in orientation and include studies of banking within particular countries or regions, and
studies of particular themes such as Corporate Banking, Risk Management, Mergers and
Acquisitions, etc. The books’ focus is on research and practice, and they include up-to-date
and innovative studies on contemporary topics in banking that will have global impact and
influence.
Titles include:
Yener Altunbas¸, Blaise Gadanecz and Alper Kara
SYNDICATED LOANS
A Hybrid of Relationship Lending and Publicly Traded Debt
Yener Altunbas¸, Alper Kara and Öslem Olgu
TURKISH BANKING
Banking under Political Instability and Chronic High Inflation
Elena Beccalli
IT AND EUROPEAN BANK PERFORMANCE
Paola Bongini, Stefano Chiarlone and Giovanni Ferri (editors)
EMERGING BANKING SYSTEMS
Vittorio Boscia, Alessandro Carretta and Paola Schwizer
COOPERATIVE BANKING:INNOVATIONS AND DEVELOPMENTS
COOPERATIVE BANKING IN EUROPE
Case Studies
Roberto Bottiglia, Elisabetta Gualandri and Gian Nereo Mazzocco (editors)
CONSOLIDATION IN THE EUROPEAN FINANCIAL INDUSTRY
Alessandro Carretta, Franco Fiordelisi and Gianluca Mattarocci (editors)
NEW DRIVERS OF PERFORMANCE IN A CHANGING FINANCIAL WORLD
Dimitris N. Chorafas
CAPITALISM WITHOUT CAPITAL
Dimitris N. Chorafas
FINANCIAL BOOM AND GLOOM
The Credit and Banking Crisis of 2007–2009 and Beyond
Violaine Cousin
BANKING IN CHINA
Vincenzo D’Apice and Giovanni Ferri
FINANCIAL INSTABILITY
Toolkit for Interpreting Boom and Bust Cycles
Peter Falush and Robert L. Carter OBE
THE BRITISH INSURANCE INDUSTRY SINCE 1900
The Era of Transformation
Franco Fiordelisi
MERGERS AND ACQUISITIONS IN EUROPEAN BANKING
Franco Fiordelisi, Philip Molyneux and Daniele Previati (editors)
NEW ISSUES IN FINANCIAL AND CREDIT MARKETS
Franco Fiordelisi, Philip Molyneux and Daniele Previati (editors)
NEW ISSUES IN FINANCIAL INSTITUTIONS MANAGEMENT
Franco Fiordelisi and Philip Molyneux
SHAREHOLDER VALUE IN BANKING
Hans Genberg and Cho-Hoi Hui
THE BANKING CENTRE IN HONG KONG
Competition, Efficiency, Performance and Risk
Carlo Gola and Alessandro Roselli
THE UK BANKING SYSTEM AND ITS REGULATORY AND SUPERVISORY FRAMEWORK
Elisabetta Gualandri and Valeria Venturelli (editors)
BRIDGING THE EQUITY GAP FOR INNOVATIVE SMEs
Kim Hawtrey
AFFORDABLE HOUSING FINANCE
Otto Hieronymi (editor)
GLOBALIZATION AND THE REFORM OF THE INTERNATIONAL BANKING AND MONETARY
SYSTEM
Munawar Iqbal and Philip Molyneux
THIRTY YEARS OF ISLAMIC BANKING
History, Performance and Prospects
Sven Janssen
BRITISH AND GERMAN BANKING STRATEGIES
Kimio Kase and Tanguy Jacopin
CEOs AS LEADERS AND STRATEGY DESIGNERS
Explaining the Success of Spanish Banks
Alexandros-Andreas Kyrtsis (editor)
FINANCIAL MARKETS AND ORGANIZATIONAL TECHNOLOGIES
System Architectures, Practices and Risks in the Era of Deregulation
M. Mansoor Khan and M. Ishaq Bhatti
DEVELOPMENTS IN ISLAMIC BANKING
The Case of Pakistan
Mario La Torre and Gianfranco A. Vento
MICROFINANCE
Philip Molyneux and Eleuterio Vallelado (editors)
FRONTIERS OF BANKS IN A GLOBAL WORLD
Simon Mouatt and Carl Adams (editors)
CORPORATE AND SOCIAL TRANSFORMATION OF MONEY AND BANKING
Breaking the Serfdom
Anastasia Nesvetailova
FRAGILE FINANCE
Debt, Speculation and Crisis in the Age of Global Credit
Anders Ögren (editor)
THE SWEDISH FINANCIAL REVOLUTION
Dominique Rambure and Alec Nacamuli
PAYMENT SYSTEMS
From the Salt Mines to the Board Room
Catherine Schenk (editor)
HONG KONG SAR’s MONETARY AND EXCHANGE RATE CHALLENGES
Historical Perspectives
Noël K. Tshiani
BUILDING CREDIBLE CENTRAL BANKS
Policy Lessons for Emerging Economies
Ruth Wandhöfer
EU PAYMENTS INTEGRATION
The Tale of SEPA, PSD and Other Milestones Along the Road
The full list of titles available is on the website:
www.palgrave.com/finance/sbfi.asp
Palgrave Macmillan Studies in Banking and Financial Institutions
Series Standing Order ISBN 978–1–4039–4872–4
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EU Payments Integration
The Tale of SEPA, PSD and Other
Milestones Along the Road
Ruth Wandhöfer
© Ruth Wandhöfer 2010
Foreword © Gertrude Tumpel-Gugerell 2010
Softcover reprint of the hardcoverm 1st edition 2010 978-0-230-24347-7
All rights reserved. No reproduction, copy or transmission of this
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First published 2010 by
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ISBN 978-1-349-31839-1 ISBN 978-0-230-31399-6 (eBook)
DOI 10.1057/9780230313996
This book is printed on paper suitable for recycling and made from fully
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processes are expected to conform to the environmental regulations of the
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A catalogue record for this book is available from the British Library.
Library of Congress Cataloging-in-Publication Data
Wandhöfer, Ruth, 1976–
EU payments integration: the tale of SEPA, PSD and other milestones
along the road/Ruth Wandhöfer.
p. cm. — (Palgrave Macmillan studies in banking and financial
institutions)
ISBN 978-1-349-31839-1 (hardback)
1. Finance—European Union countries. 2. Payment—European Union
countries. 3. Euro area. I. Title.
HG186.A2W35 2010
332.1'78—dc22
2010027570
Contents
List of Tables viii
List of Figures x
Foreword by Gertrude Tumpel-Gugerell xi
About the Author xiv
Acknowledgements xv
Commonly Used Abbreviations and Acronyms xvi
Title I The Opening Act: The Beginning of the End … or
Just the End of the Beginning? 1
(1) Prelude 1
(2) Overture 3
Title II E U Financial Regulation Explained: ‘The Powers
and the Pitfalls’ 5
Introduction 5
(1) Single Market legislation: origins and architecture 6
(2) The institutions, instruments and regulatory
processes 11
(3) EU legislation in action and the Heisenberg
principle 28
Title III S EPA: ‘A New Hope’ 33
Introduction 33
(1) The growing web of payments legislation 33
(2) European banking and payments landscape 40
(3) The Euro as a trigger for further evolution 44
(4) Coping with the Euro introduction: the
Heathrow Group 45
(5) Rattling sabres and a pricing regulation 51
(6) The birth and early years of the EPC 57
(7) A Roadmap emerges 73
v
vi Contents
Title IV P SD – A Parallel Universe to SEPA: The Odyssey
from the First Ideas to the Final Text 77
Introduction 77
(1) A great idea … or rather lots and lots of them 77
(2) From the NLF to the final text 86
(3) A last sanity check against SEPA requirements 115
Title V From Publication to Transposition:
The Directive Dilemma 118
Introduction 118
(1) First reactions from the market 118
(2) The Transposition Working Group and the
PSD Expert Group 120
(3) PSD interpretation: a web of ambiguity emerges 122
(4) PSD national implementation: the Midas touch 128
(5) Industry guidance to help smooth the path 133
(6) Review of related legislation 135
Title VI S EPA From Design to Launch: Finding Your
Way through the SEPA Jungle 142
Introduction 142
(1) SEPA standards, design principles and geography 143
(2) The SEPA schemes: What’s inside? 152
(3) So what benefits can the SEPA schemes
bring to users? 165
(4) The launch of SEPA: reality versus expectation 172
(5) SEPA for cards: pump up the volume 176
(6) Infrastructures in SEPA: a fresh look 182
(7) SEPA for cash update: has the bleeding
stopped yet? 185
Title VII Postlude: The Future for European Payments and
the Emergence of a Global Agenda 187
Introduction 187
(1) PSD: Life after implementation? 187
(2) Je Ne SEPA?: Achievements so far and next steps 197
(3) Completing the picture: the world is watching 221
Contents vii
Epilogue 254
Appendix I: PSD Implementation: Use of Derogations in Titles III
and IV by EU/EEA Member States 256
Appendix II: PSD Implementation: Examples of cases of gold-plating,
non-conforming transposition and other interesting transposition
features at Member State level 275
Notes 279
Index 284
List of Tables
3.1 Summary of credit institutions and branches in key
EU member states as at 2007 41
3.2 Overview of average use of payment types per citizen
across a number of individual EU member states
plus the EU 27 as at 2007 43
3.3 EC Communication 2000/36: Objectives 52
3.4 Convention on Credit Transfers in Euro: Key
features 62
3.5 ICP Convention: Key features 62
3.6 Initial SEPA indicators 65
3.7 Key SEPA milestones presented during the
October 2003 SEPA workshop 66
3.8 The initial EPC recommendations on cards 68
3.9 SEPA for cash: the nine recommendations 69
3.10 The CSM Model 72
3.11 Key Deliverables Requested in the ECB’s Third
Progress Report on Retail Payments 74
4.1 An overview of the 21 Annexes 78
4.2 The PSD’s co-decision timeline 88
4.3 Article 75 of the PSD 112
5.1 List of Member State derogations within the PSD 129
5.2 PSD industry guidance overview 133
5.3 Article 3 of Directive 2009/111/EC 141
6.1 Summary of the Finnish SCT migration plan 174
6.2 SCF-compliant options 178
6.3 SEPA scheme compliant CSMs and PE-ACH
providers 184
7.1 Examples of practical issues experienced since
PSD went live 188
viii
List of Tables ix
7.2 EU payments harmonisation: the four forces
of change 222
7.3 List of African regional cooperations 228
7.4 Membership of the African regional cooperation
groupings 230
