Bank and Building Societies

The Irish Bankers' Federation (IBF) in co-operation with the Irish Mortgage and Savings Association (IMSA) has established a structure to plan and oversee preparations for the changeover to the euro. This structure is headed by a Steering Committee with expert groups on specific business areas. The IBF and IMSA are also undertaking research in support of the preparation of a comprehensive logistical plan for the changeover of currency notes and coin from 1 January 2002. The IBF and IMSA are represented on the Euro Changeover Board of Ireland.

Irish banks and building societies are committed to meeting customers' euro financial services needs on an internationally competitive basis.

Furthermore, Irish banks and building societies have published a Standard of good practice on bank charges for conversion to euro and on dual display of amounts which has been welcomed by the European Commission as meeting its recommendations in these areas and which has also been approved for publication by the Director of Consumer Affairs. A copy of the Standard is at Appendix 4.

From 1 January 1999:

	Any banking service required in euro will be available in Ireland (with the exception of cash until 1 January 2002, of course).
	While most wholesale banking transactions will be initiated and settled in euro from 1 January 1999, the pace of the changeover in retail banking will be determined by customers.
	Banks and building societies will process lodgements and payments expressed in either Irish pounds or euro regardless of the denomination of the customer's account. Customers will be encouraged to use electronic means in making or receiving euro payments, but cheques and credit transfers in euro will also be available. Charges for domestic transactions in euro will be the same as charges for identical domestic Irish pound transactions, i.e. the charge for a domestic transaction will be unaffected by whether the transaction is denominated in euro or in Irish pounds.
	In general, banks and building societies, where requested, will provide current, loan and savings accounts denominated in euro or will enhance existing accounts to operate in euro. Service charges for such accounts will be the same as for identical Irish pound accounts, i.e. service charges for such accounts will be unaffected by whether the account is denominated in euro or in Irish pounds. Account statements, whether the account is in Irish pounds or euro, will show a dual display of amounts which will at a minimum include the closing balance both in Irish pounds and in euro. In the case of transactions requiring conversion, statements will also show the original and converted amounts and the fixed euro conversion rate.
	The wide range of existing cross-border payment services with participating Member States, non-participating Member States (e.g UK) and non-EU countries - including credit transfers, telegraphic transfers, money orders, etc. as well as a number of newer, rapid and cost-effective electronic options - will be available in euro. In contrast, domestic cheques, whether denominated in Irish pounds or in euro, will remain a relatively slow and costly means of making cross-border payments because there is not a Europe-wide clearing system, and are therefore not recommended for this purpose. Customers should consult their bank or building society on the optimum payment method to suit their particular needs.
	On a once-off basis free of charge, banks and building societies will convert as required existing current, loan and savings accounts denominated in Irish pounds or other participating currencies to euro.
	The participants in the Dublin interbank market will discontinue the provision of reference rates for the calculation of DIBOR and will adopt EURIBOR (the reference rate for the euro area) as the standard for the Dublin market.
	Customers will be able to convert the currency of any participating Member State into the currency of any other participating Member State at the fixed euro conversion rate, i.e. there will be no difference between the buying and selling rates for such currencies. This does not mean that commission will not be payable.

From 1 January 2002:

	All services hitherto in Irish pounds and other participating currencies will be in euro.
	Existing accounts denominated in Irish pounds and other participating currencies will be converted to euro at the fixed euro conversion rates free of charge.