Retail Banking


In European Union arrangement frame, with the aim of increasing the speed and quality of the money transfer made between countries and reducing the cost an international bank account number standard called IBAN has been developed.

Standard of IBAN (How Is IBAN Created)
About IBAN

Today, IBAN is used in 33 European countries.
The aim of IBAN is to hinder the errors in money transfer made with mediation of the banks in European countries and other financial institutions and defaults that are born because of the errors. With the help of IBAN the transferred money pass from the sender account to receiver account in a fast and faultless way; and so, cooling period occurred due to errors in transaction and imputed cost die out.

How does IBAN provide convenience to the account owners?
Nowadays form and length of account numbers of every country and bank is different. As they don’t have a standard in their account numbers, the customers who will transfer money to another country or bank can’t be sure about accuracy of facing account number that they take from people with whom they will make money transfer.

But if a buying of a property or service is discussed, there are different account numbers on the bill coming from many different seller and this causes importer companies/persons who send money make mistakes. Consequently, the money transfer that is made with wrong account numbers doesn’t materialize; when the money reaches to the facing bank it is understood that the account number is faulty. To correct the faulty transaction, many operations are done, processing time extends and the cost goes up.

In countries which carry into practice of IBAN for every bank account number an IBAN is given to account owner. IBAN has a certain form and standard for every country. In IBAN there is a two-stage ‘control number’ that is made with a special encryption algorithm. When a customer who wants to transfer money to another country or bank gives his/her IBAN to the sender bank, the receiver accounts’ IBAN is checked in the receiver bank before the money goes to the acquiring bank. If the IBAN is faulty, money isn’t sent to the facing bank and the faulty transaction is hindered.

Usage of IBAN

Let’s assume that Mr. Ahmet who lives in Germany wants to send money order to his son Ali who lives in Turkey.

As Ali doesn’t know his IBAN number, he goes to X bank to learn it.

Ali says his IBAN number to his father.
After Mr. Ahmet learns the IBAN of account to which he sends money order, he goes to Y bank in Germany. Mr. Ahmet gives his sons’ IBAN to authorize of the bank and says that he wants to send money order to this account.

The authorized person of Y bank checks the IBAN given from Mr. Ahmet whether it is correct or not on the screen in front of him. If the given IBAN is correct, the money transfer is materialized.
As the money transfer is materialized with correct IBAN. When the assignment message coming from Y bank in Germany reached to X bank in turkey, the turnover that Mr. Ahmet sent passes to the count of Ali automatically.


Standard of IBAN (How Is IBAN Created)

IBAN occurs with figures and letters indicating only one account in bank accounts of all over the world. Every account has an IBAN and an IBAN indicates only one account.
An IBAN occur with maximum 34 figures. The first four figures of IBAN are country code that is two digit and control figure that is two digit. Control number shows whether IBAN is correct and valid. Another part of IBAN contains national bank account number. This part can be determined by every country on condition that maximum length of IBAN must be 34-digit.

The IBAN length of our country has been determined as 26 digits. You can see the IBAN form of turkey below.

IBAN standards of some European countries are in the table below:


Country Length Sample Numbers
Germany 22 DE89 3704 0044 0532 0130 00
Avustria 20 AT61 1904 3002 3457 3201
Belgium 16 BE68 5390 0754 7034
Denmark 18 DK50 0040 0440 1162 43
Finland 18 FI21 1234 5600 0007 85
France 27 FR14 2004 1010 0505 0001 3M02 606
Holland 18 NL91 ABNA 0417 1643 00
England 22 GB29 NWBK 6016 1331 9268 19
Sweden 24 SE35 5000 0000 0549 1000 0003
Switzerland 21 CH39 0070 0115 2018 4917 3
About IBAN

Presentation of IBAN in Electronic Environment and Paper Environment

If IBAN number is embroidered and hidden in electronic environment, (for example, making entrance into computer or screen) all of the letters and figures must be written without side-by-side space or any separate (parenthesis, comma, dash etc.) .This kind of display is called as ‘electronic display’. The display of IBAN which is printed on the paper is called as ‘spelling display’. In this displaying, IBAN is written as separated from left side with 4 orders. After the number is written 4 each group, if still there are numbers, they are written as side-by-side.

Electronic displaying of IBAN

  • TR5600061000 00012990022302

Spelling displaying of IBAN

  • TR56 0006 1000 0001 2990 0223 02

Usage of IBAN in Turkey

Usage of IBAN in turkey started in 1st September 2005. All of the banks which are active in our country produce an IBAN number for every account that is demanded by customer (undated TL and Currency Account) and discussed to money transfer. Besides, since 1st September 2005 banks have started to accept to welcome the demand of money order from abroad and the money orders coming from abroad with IBAN.

Usage of IBAN in Domestic Money Transfer

As well as the money transfer made abroad, IBAN was started to be used in money transfer between banks in our country (EFT transactions) in 1st September 2005. So, from a bank and other financial institution, the customers can send money order to an account of another bank or financial institution in Turkey.

In money transfers made with IBAN there will no need to know such details as receiver’s agency, town etc. The process of transfer can be carried out with only account number. So ,like in international money transfers, in our country, in the EFT transactions among banks, such risks as delay resulting from misspelling of the receiver’s bank account number, transferring to wrong account, etc are eliminated, too. Application of IBAN is not obligatory in both domestic and foreign money transfers. The money transfer with the available account numbers goes on. It is up to decision of receiver and sender to use IBAN in money transfer or not.

What should customers do?

To get IBANs of your bank accounts get in touch with your Bank. You can get your IBAN related to your accounts from only your Bank. Other people, corporations and institutions have no right to produce IBAN for your account. To benefit from facilities came with IBAN forward your IBAN to people who will send money to your account and ask for IBAN of people you will make money transfer with. Write your IBAN number to documents you will give to people or institutions you trade with or transfer money to you as possible as you can. Error probability in money transfers made with IBAN is considerably low. Money transfers with IBAN which you send or receive result sooner than money transfers made with account number. Therefore please prefer to use IBAN in not only international money transfers but also domestic money order and EFT transactions.