GOOD BANKING PRACTICE - Fair Finance Watch

1 good BANKING PRACTICE , 7 September 2004 THE FINNISH BANKERS ASSOCIATIONGOOD BANKING PRACTICEGood BANKING PRACTICE has evolved from practical consists of general principles governing the relationshipbetween a customer and a bank and the banks operatingprocedures. The relationship between a customer and a bank isalso governed by a number of legislative provisions, guidelinesand regulations issued by the supervisory publishing these rules, the banks wish to emphasise theimportance of good BANKING PRACTICE and to inform their custo-mers, employees and other interest groups of the code ofconduct to be followed.

2 The rules do not alter any agreementsbetween a customer and a BANKING PRACTICE , 7 September 2004 BANKING OPERATIONSA ccording to good BANKING PRACTICE , a bank will familiarise itself with itscustomers and their financial standing to the extent required by eachindividual customer necessary, agreements on the services commissioned by a cus-tomer will be made. A bank will always ascertain a customer s identitybefore entering into a service banks will ensure that their personnel is duly qualified and adequatelytrained for their functions and they will organise the necessary super-vision, regulation and management of their BANKING servicesA bank will render its customers basic BANKING services within the limitsset by legislative provisions, regulations issued by authorities and theterms of an account and other conditions.

3 Basic BANKING services in-clude a bank account for daily BANKING affairs, a means of payment withaccess to an account and a possibility to settle payment on a bank s service fees, account forms, their terms andconditions, the means of payment available and on their use and theinterest to be earned on the funds thus deposited will be available to thecustomer at the bank will attend to a customer s payment transactions in accordancewith the orders received. For purposes of security, a bank will give thecustomer instructions on how to the keep such means of payment andrelated PIN codes with due care 2 good BANKING PRACTICE , 7 September 2004A bank will have the right to refuse to open an account for a personal cus-tomer for weighty reasons only.

4 A bank will notify the customer on theground for its bank is entitled to refuse to open an account for daily BANKING affairs orto grant a real-time payment means*) to a customer, if:yit should have a reason to suspect abuse of the account or themeans of paymentyit is not able to identify a customer reliably;or ifythe customer already has an account or a means of bank will not refuse to open an account or to grant a means of paymentto a customer merely on the basis of a record of a previous default bank may refuse to grant other than a real-time means of payment, if:yit should have reason to suspect abuse of the means of paymentyfunds have been channelled to the customer s account irregularlyor incidentally.

5 Or ifya customer has disruptions in payments or other servicesInformation on the various loan alternatives offered by a bank, their essen-tial terms and conditions and the costs to be paid by a customer areavailable to the customer at the *) sufficiency of funds on the account will be checkedGood BANKING PRACTICE , 7 September 2004 When granting a loan to a customer, a bank will ascertain, on the basisof the information available to it, the customer s ability to meet the obliga-tion in question. Where necessary, the bank will require the customer toprovide security for the a lending relationship, a bank will act responsibly, with the intention ofgiving due consideration to the customer s financial safety and the feasi-bility of success of the operations to be and investment servicesInformation on a bank s selection of deposit and investment forms, theirterms and conditions and the interest to be earned on the funds thusdeposited will be available to the customer at the bank.

6 In its businessoperations, a bank will pay special attention to safeguarding the positionof its a securities broker, a bank will provide a customer with such informa-tion on the securities in question as may have a material impact on thecustomer s decision to initiate a transaction or to close a bank is to manage any assets entrusted to it by a customer with duecare in accordance with the respective agreement between the bank andthe customer. In accordance with the agreement, a bank will provideinformation to the customer on the value of the assets entrusted to it andthe income earned from such RELATIONSR elations with customers will be based on mutual integrity and confidence,strengthened by long-term relationships.

7 The banks will have due regardto their customers interests in the conduct of their BANKING PRACTICE , 7 September 2004 Freedom of choiceA customer will be free to select the desired services from a bank sservice portfolio. A bank will inform its customer of alternative servicessuitable for the customer s customer will be able to switch to another service or bank unless other-wise provided on a particular service under the agreement between thecustomer and the on customersA bank will have the right to obtain such information on a customer as isnecessary to find out the customer s financial position and to safeguardthe recovery of the granted bank will only register such information on a customer as is necessaryfor BANKING business.

8 Any information in a bank s possession concer-ning a customer will be subject to statutory bank information concerning a customer may be disclosed to third partiesexcept with the customer s permission or if requested by those entitledto obtain such information by law. A bank will make the necessary inter-nal arrangements to ensure that its customer registers are duly on BANKING servicesThe prices of the services offered by a bank will be listed in a service feetariff available for inspection by customers in the bank s branches. Feesfor services offered via the information network can be seen at thebanks websites.

9 Any changes to prices in the service fee tariff will beannounced well in advance of their (4)5 good BANKING PRACTICE , 7 September 2004 The terms and conditions of service agreements on the services providedto customers shall be stated in an understandable way. The terms andconditions will set out the most important rights and obligations of bothparties. The information on the BANKING services shall be stated clearlyand bank will observe the generally accepted principles of marketing. Theadvertising of services shall be truthful and give an accurate picture of theservices and other feedback from customersA bank will adopt a specific procedure for the processing of complaintsand other feedback from for the complaints procedure to be followed will be availableto customers in the bank s branches, and for the services offered via theinformation network, at the banks websites.

10 Where necessary, the ban-king personnel will advise customers on such a bank will respond to a complaint in reasonable time. Advice is alsoavailable to the customer at the Advisory Office for Bank rules will replace the previous rules dated 11 January