Bank Revenue Loss Calculator To Track Impact of EU Cross-Border Rules
CBA, a developer of Java-based software for bank international payment End-to-End Straight Through Processing, has devised an equation that demonstrates to banks the potential loss of revenue that their businesses will suffer as a result of forthcoming EU regulations. According to the Cross-Border Credit Transfers Directive 97/5/EC and later Regulations, as from July 2003 banks will have to cap international payment processing fees at the same level as domestic payments. In practice, this means that average revenues per international transaction will fall from 24 Euros down to 2 Euros or less. The CBA calculation enables banks to assess their likely revenue shortfalls, once the regulations come into effect.