SEPA Will Survive Even if the Euro Doesn’t, Believes Banking Industry

A new survey of the banking industry unsurprisingly shows with the sovereign debt issues still raging across Europe, nearly 70% of respondents believe that the euro will not survive in its current form, however overall sentiment with regards to the euro and the single euro payments area (SEPA) was still more positive. Interestingly the views around the impact of the Payment Services Directive (PSD) are less clear, with the majority not seeing much impact yet.

The fourth State of the European Payments Marketplace Survey, conducted by the Financial Services Club and sponsored by European Banking Association (EBA) and Logica, with over 350 participants from 53 countries, shows an increasing expectation of success for SEPA. The survey also highlights the growth in real-time payments across the board.

“In 2011, Europe’s markets were even more challenged by the Eurozone’s issues but, surprisingly, the progress of the PSD and SEPA were seen as positive,” said Chris Skinner chief executive officer (CEO) at the FS Club (FSC). “This year we have also continued our analysis of the relationship between banks and their corporate clients, which highlights some interesting differences.”

The survey also reviews issues around liquidity risks, where 86% of bankers were in agreement that pressures on balance sheets for banks and corporates as well as new regulations, are driving increased activity around liquidity with a new technology helping the drive to real- time liquidity management.


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