New members broaden reach of EBA’s EURO Clearing system

The Euro Banking Association (EBA), an association of the world’s largest banks, announced today the names of 11 European clearing banks which have become members of its EBA Euro Clearing System and a further nine clearing banks who will join in April 1999.

The banks joining the EBA Euro Clearing System are: Den Norske Bank, London; Natexis Banque, Paris; Banco Popular Espanol, Madrid; Swedbank, Stockholm; Rabobank, Utrecht; Bank of Scotland, Glasgow; Leonia Bank, Helsinki; Bank of Ireland, Dublin; National Australia Bank, London; Monte dei Paschi, Milan; and Bank of America, Frankfurt.

The new member banks have been connected to the EBA’s current ecu payment system. As of January 1999, these banks, together with all other major clearing banks in Europe that form part of the system, will provide clients with a cost-effective, pan-European euro payment system.

Gilbert Lichter, CEO of the EBA Euro Clearing Company, said, "The addition of these new member banks to our system further demonstrates the strength behind our system. With 62 of Europe’s largest clearing banks as members, we believe we offer the best choice for euro payment clearing."

The EBA Euro Clearing System is currently designed to handle the processing of 200,000 payments per day, providing a real time netting system with irrevocability and finality for each payment.

Finn Otto Hansen, General Manager of Den Norske Bank said, "We decided to join EBA in order to offer Norwegian clients best terms and conditions for payments in euro. We think that the euro will become an important currency both for commercial and for financial transactions for Norwegian clients".

The banks which have applied to join the EBA Euro Clearing System in April 1999 are: Bayerische Hypotheken und Vereinsbank, Munich; Merita Bank, Helsinki;

La Caixa, Barcelona; Banca Populare di Milano, Milan; Reiffeisen Zentralbank, Vienna; Caisse des Depots et Consignations, Paris; First Chicago NBG, London;

Fortis Bank, Netherlands/Mees Pierson; and, DG Bank, Frankfurt.

The EBA’s Euro Clearing System goes ‘live’ in mid-November 1998, handling the current ecu and providing the EBA with six weeks to ensure the security of its systems.

Gilbert Lichter added, "With 12 years experience settling the ecu and with nine out of 10 wholesale and commercial payments in Europe having an EBA member bank as a counterparty, the EBA provides a compelling offering with direct distribution across Europe rather than through one domestic financial centre."