Brussels to push for initiative on bank accounts

The European Commission is currently assessing how best to overcome shortcomings identified by a Commission study on banks' self-regulation, Commissioner for health and consumer rights John Dalli said in a reply to a parliamentary question by Labour MEP Louis Grech.

A study carried out for the Commission found that banks had not been successful in supporting and protecting European consumers when switching a bank account from one bank to another: non-compliance of banks with the self-regulatory code was found in 71% of the cases analysed, and lack of information prevailed amongst bank staff.

Grech said the results of a consumer market study published at the end of February 2012 revealed that more than two-thirds of mystery shoppers were not able to switch their bank account successfully.

When moving abroad, consumers and citizens experience difficulties when opening a bank account in their new host country, since this exercise is often subject to conditions of residence and employment.

Grech said that these  findings clearly showed that the self-regulation initiative based on common principles, as established by the Banking Industry Committee (EBIC), did not deliver to consumers the clarity and certainty that was needed.

Dalli told Grech the Commission is considering bringing forward a EU initiative on bank accounts, aiming to enhance protection of consumers of retail financial services and the integration of the single market.

Additionally, Brussels is now monitoring the measures in place in every member state to facilitate access to bank accounts, in particular in EU countries other than the consumer's permanent residence.

"Based on results of the public consultation and on notification of national measures following the recommendation, the Commission will assess whether further measures are needed in order to overcome the problems highlighted in its 2011 staff working paper on citizens' and businesses' 20 main concerns in the single market."