Postal code &2 in country &1 does not exist in bank directory

What causes this issue?

Automatic creation of banks in the bank directory is not allowed.
Therefore, you can only assign a bank that already exists in the bank
directory.

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.