Nicosia, Cyprus. The Association of Cyprus Banks has voiced strong disagreement with proposed legislative amendments affecting access to payment accounts, citing potential legal, practical and competitive problems for the sector.
Objections to proposed amendments
In a note signed by senior director Michalis Kronides, the association said it disagrees with amendments related to the comparability of fees, the switching of payment accounts and access to payment accounts by very small businesses.
It said it opposes proposals to expand the definition of “consumer” to include very small businesses, shareholders of very small businesses and self-employed individuals acting within their professional activities.
The association also objected to provisions that would allow a payment account with basic features to be maintained at more than one credit institution.
Legal and practical concerns
The association said its positions relate to practical issues tied to implementing certain provisions, as well as legal and constitutional matters arising from the proposed amendments.
Reference to EU Directive 2014/92/EU
The association said the purpose and philosophy of European Directive 2014/92/EU is to provide a specific category of consumers, namely natural persons, with access to a bank account.
It said the directive was designed to assist individuals who face difficulties or are unable to open a bank account, including political refugees, asylum seekers, people without identity cards or passports, and individuals without permanent residence.
The association said the directive clearly states that very small businesses as legal entities do not fall within its scope of application.
Competitive impact warning
The association warned that changes to existing law that harmonised national legislation with the directive could place domestic banks at a competitive disadvantage compared with rival banks in the European Union.
How do you think the proposed amendments could affect access to payment accounts in Cyprus?
