Electronic Money (Directive)
The EU Commission wishes to promote the circulation of electronic money by simplifying the legal requirements for the institutions concerned. The issuance of money is to be supervised according to its actual economic risk potential. Hence, the Directive treats institutions licensed to issue e-money different from credit institutions. Moreover, e-money institutions will be entitled to engage in further business activities.
The already restricted option of e-money institutions to issue credits does not constitute a systemic risk, since - unlike credit institutions - e-money institutions must not use money received for payment services for the granting of credits. In this respect, the proposed relaxation of requiremens and ongoing obligations compared to those applicable to credit institutions is indeed justified. Thus the Proposal allows for a reduction of payment transactions costs.