Concept in Definition ABC

If we look at the digits of our bank checking account and we are somewhere country of the European Union we can see that there are 24 numbers. Well, those numbers make up the IBAN, an acronym that comes from English and is the acronym for International Bank Account Number, which we could translate as code international bank account.

The IBAN came into force as a code from 2014 and its main objective is to unify banking criteria in the European Union, specifically in the so-called Single Zone of Payments in euros or SEPA.

In practice, the IBAN code is used to collect payroll, to make transfers or to direct bank receipts and affects both individuals and companies. Thus, if a client one bank wants to make a transfer to another Bank You must provide your entity with the beneficiary's bank account code with the Format WERE GOING.

The IBAN code is also intended to make all banking operations more efficient, secure and faster.

IBAN formation

The IBAN is a bank code to identify the current accounts of your clients. The 24 digits that comprise it have the following meaning: the first two are capital letters that refer to the country code (for example, ES of Spain), the first two numbers are a control code, the next eight are an identifier and the last ten numbers are the current account number itself.

The IBAN, one more step of the monetary union in the European Union

Before the IBAN, the CCC or current account code was used, the digit that served as the identifier of the bank account. The incorporation of the IBAN has been accompanied by other changes, especially the introduction of the Swift code or BIC code, a code that only affects international transactions at the margin of the European Union.

On the other hand, it must be remembered that since 2002 the euro has been used in the European Union, so that the euro, the IBAN or the SEPA are terms that are framed in the context of the monetary union European. In general terms, the monetary union brings a reduction in transaction costs, a stability in interest rates, a higher transparency and an improvement in business relationships. All of this translates into less uncertainty with respect to economic growth.

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