1. Click to edit Master text styles –Second level Third level –Fourth level »Fifth level PP Mar 2008 1 ABEEBA Priority Payments An Executive Overview ABEEBA

2. Click to edit Master text styles –Second level Third level –Fourth level »Fifth level PP Mar 2008 2 ABEEBA Scheme introduction Priority Payments Business Practices: Responds to customer needs and expectations, in particular for corporate customers, improving customer service and satisfaction levels; Adds an intra-day option to existing payment services; Allows participating banks to envisage new revenue streams from new products and services; Meets with regulatory expectations for payment processing in SEPA.

3. Click to edit Master text styles –Second level Third level –Fourth level »Fifth level PP Mar 2008 3 ABEEBA Main characteristics From client to client within 4 hours Open for all banks in SEPA Free choice of payment channel Requirement: capable of processing within 1 hour EURO1, STEP1 and TARGET2 are all viable choices Amounts in EUR Scheme managed by EBA Business Practices scheme so no bilateral or multilateral contracts Scheme introduction

4. Click to edit Master text styles –Second level Third level –Fourth level »Fifth level PP Mar 2008 4 ABEEBA Who can join? Open scheme available to all banks in SEPA (so not only EBA banks) Bank must be domiciled and licensed for business in SEPA Austria Belgium Bulgaria Cyprus Czech Republic Denmark Estonia Finland France * Germany Greece Great Britain and Northern Ireland Hungary Iceland Ireland Italy Latvia Liechtenstein Lithuania Luxembourg Malta The Netherlands Norway Poland Portugal Romania Slovakia Slovenia Spain Sweden Switzerland Participation * Including Guadeloupe, Martinique, French Guyana and Réunion; other DOM territories are not included

5. Click to edit Master text styles –Second level Third level –Fourth level »Fifth level PP Mar 2008 5 ABEEBA Process Timing of a Priority Payment STEP1 cut-off time adjusted to fit timing conditions of scheme

6. Click to edit Master text styles –Second level Third level –Fourth level »Fifth level PP Mar 2008 6 ABEEBA Upon receiving PP instruction from client: Validate beneficiary bank is in Central Repository Accept instruction and send to Payment Channel (capable of processing a payment within 1 hour) within 1 ½ hour after receiving instruction from client Monitor progress in Payment Channel Sending bank is responsible that conditions are met for processing (liquidity, On-Hold payments) Cancel instruction and re-route if payments cannot be processed Upon receiving PP advice from Payment Channel: Make funds available to beneficiary within 1 ½ hour after receiving advice Process How does it work?

7. Click to edit Master text styles –Second level Third level –Fourth level »Fifth level PP Mar 2008 7 ABEEBA... specifying details of his account S E P A Banks register in Central RepositoryBank productizes the Priority Payment… both for sending as well as for receiving PPsA Seller can now request to be paid urgently Priority Payment Process Steps SLA Banks register in Central Repository SLA Pay me urgently: Amount € IBAN BIC-11 Details Please click to see the animation

8. Click to edit Master text styles –Second level Third level –Fourth level »Fifth level PP Mar 2008 8 ABEEBA S E P A Buyer instructs PP – Bank has 1 ½ hour to sendBuyers bank checks Sellers bank is in Repository1 hour for processing PP in Payment Channel1 ½ hour to make funds made available to Seller Priority Payment Process Steps Lookup BIC-11 Instruction for PP: Amount € IBAN BIC-11 Details Execute PP via Payment Channel of choice MT103+ 23B:SPRI 32A:EUR 71A:SHA Funds

9. Click to edit Master text styles –Second level Third level –Fourth level »Fifth level PP Mar 2008 9 ABEEBA Process Conventions for coding PP instruction SWIFT message MT103+ format Specify ‘SPRI’ in field 23B Specify amount in ‘EUR’ in field 32A Specify ‘SHA’ in field 71A

10. Click to edit Master text styles –Second level Third level –Fourth level »Fifth level PP Mar 2008 10 ABEEBA Join the scheme Steps for joining the scheme 1.Get documentation from EBA website http://www.abe-eba.eu 2.Prepare internal organization 3.Develop IT infrastructure 4.Register adherence to the scheme in the Central Repository 5.Participate in voluntary testing Scheme has been live since 28 th January 2008

11. Click to edit Master text styles –Second level Third level –Fourth level »Fifth level PP Mar 2008 11 ABEEBA EBA: Manages the scheme Runs Pilot Group (early adapters) Authorizes new entries into Central Repository Provides general support Facilitates voluntary testing Players in the Scheme CB.Net: Hosts Central Repository Provides support for Central Repository issues Offers portfolio for additional services

12. Click to edit Master text styles –Second level Third level –Fourth level »Fifth level PP Mar 2008 12 ABEEBA Priority Payments Pilot Group: Players in the Scheme ABN Amro Bank NV Banco Comercial Portugues Banco de Sabadell SA Banco Espirito Santo SA Bank Austria Creditanstalt AG Caixa Geral de Depositos Citibank NA Commerzbank AG Danske Bank AS Deutsche Bank AG Dexia Bank SA Dexia Banque Internationale à Luxembourg SA DnB NOR Bank Dresdner Bank AG EFG Eurobank Ergasias SA HSBC Bank PLC Intesa Sanpaolo S.p.A. JPMorgan Chase Bank N.A. Landesbank Baden-Württemberg National Bank of Greece SA Nordea Bank Danmark AS Raiffeisen Zentralbank Österreich AG Raiffeisenlandesbank Oberösterreich Sydbank AS Unicredito Italiano S.p.A. WestLB AG

13. Click to edit Master text styles –Second level Third level –Fourth level »Fifth level PP Mar 2008 13 ABEEBA EBA: Rik Wanders Senior Consultant New Business Initiatives r.wanders@abe-eba.eu Tel. +33 1 53 670 732 Mob. +33 6 80 42 07 83 Contact details CB.Net: Andrew Foulds Directory Services andrew.foulds@cbnet.info Tel. +44 20 75 22 60 94 Mob. +44 77 89 93 36 50

14. Click to edit Master text styles –Second level Third level –Fourth level »Fifth level PP Mar 2008 14 ABEEBA www.abe-eba.eu 4 rue de Galliéra, F-75116 Paris Tel. +33 1 53 67 07 00 ABEEBA www.ebaportal.eu