IBAN/IPI: Basic information on IBAN [pdf] - SIX Interbank Clearing

1.
Introduction
Euro notes and coins were put into circulation in the European economic and monetary union on
1 January 2002. The introduction of notes and coins is just one of many steps that are intended to
contribute to a united, common economic area comprising the EU Member States.
One of the many aims of the official bodies of the European Parliament is to create a market for
consumers that will offer a broader range of goods and services at more transparent prices than
was the case with the old, narrower markets that were protected by national borders and varying
regulatory systems.
The launch of the single currency makes it much easier to compare the price of a cup of coffee in
Madrid, Marseilles, Munich and Milan. Price differences may well continue to exist, but now
consumers should be able to relate them to the quality or quantity of the coffee and will not be
confused by factors such as exchange rates.
For citizens of the euro member states it will be just as easy to draw euros from the ATM near their
rented villa in Spain as from the one round the corner at home. They will be able to transfer funds
from one bank to another or pay the rental deposit for the villa by transferring funds from their
home bank to the Banca Bilbao in Barcelona.
Unfortunately, however, means of payment and especially credit transfer systems still differ in
individual countries, and transfers from one euro member state to another are disproportionately
expensive, complex and slow.
Along with the launch of euro cash, the EU Parliament has adopted a regulation which aims,
among other things, to reduce bank charges for international payments to the same level as those
paid for domestic credit transfers without restricting market mechanisms and the opportunity
for banks to compete on price.
Uniform standards accepted and applied by all EU states are a precondition for more efficient and
economical processing of payments. For this reason, the principal European banking associations
such as the FBE (Fédération Bancaire de l’Union Européenne) and the ECBS (European Committee
for Banking Standards) have joined forces to define important standards, in which Switzerland
participates as an external but directly affected party.
The most important of these standards is the <strong>IBAN</strong> (International Bank Account Number), which
is briefly introduced in the sections that follow.
<strong>IBAN</strong> <strong>IPI</strong>
New standards in credit transfers
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<strong>Basic</strong> <strong>information</strong> <strong>IBAN</strong> 03/02