PLP Chairman Fred Mitchell.
By EARYEL BOWLEG
Tribune Staff Reporter
ebowleg@tribunemedia.net
FOREIGN Affairs Minister Fred Mitchell said legislators may need to intervene if the Central Bank fails to take more aggressive action on commercial bank fees.
Minister Mitchell previously urged the Central Bank to be more proactive in regulating these fees, citing the successful example set by the Central Bank of Barbados.
Gowon Bowe, chairman of the Clearing Banks Association, expressed concern that regulating bank fees and services could lead the country towards a “communist state”, describing it as a “very slippery slope”.
In response, Mr Mitchell argued that the real slippery slope would result in improved service in his opinion.
“Hyperbole is sometimes useful, but in my view, not in this instance. Business people reading that stuff about slippery slope and communist state would think twice about coming to a communist state to do business, if that’s what’s in The Bahamas. So the comment was not helpful, apart from being inaccurate,” he said.
He emphasised that banks are currently regulated; they cannot charge any interest rate they choose and must obtain a licence to operate.
“They have to get a licence to operate. There’s a cap on the interest rate now, right now, but the response from the clearing house bank’s chair portrays a larger issue and problem, which is service to the Bahamian public will not improve if the banks just don’t get it.”
“They keep trying to force us to swallow digitalisation when the internet doesn’t work here. The service are second-rate at the banks, and they charge fees for keeping our money. If the Central Bank does not intervene more aggressively, as they have in Barbados, then perhaps the legislature will have to intervene.”
In January, the Central Bank of Barbados mandated that no fees could be charged for electronic transactions, including Automated Clearing House (ACH) and real-time payments (RTP) transfers. The bank also requires all commercial banks to offer at least one savings account that is free from fees or charges. Guidelines introduced in July mandate that banks and finance companies must seek a non-objection from the Central Bank at least 60 days before implementing or increasing fees. Additionally, there are to be no fees for electronic transfers and no cash management fees for transactions under $10,000 per day.
Free National Movement leader Michael Pintard said his party would reform the banking system if elected, expanding the Central Bank’s authority to assess fees and prevent unjustified “junk fees”.
He accused the Davis administration of “idle talk” and “handwringing” on the issue, observing that while Mr Mitchell has frequently criticised banking problems, the government has not taken meaningful action.
Mr Mitchell also alleged that all ATMs were down in Exuma, but The Tribune was unable to verify this up to press time.
Comments
Proguing 2 months, 3 weeks ago
And when will the government lower the fees (taxes) on Bahamians?
ExposedU2C 2 months, 3 weeks ago
Slimy Fwreddy Boy, Stumpy PM Davis and Dumbo AG Pinder all need to explain to the Bahamian people how is it the corrupt Davis led PLP government can continue to slap layer upon layer of regulations on the local commercial banks at the behest of the globalist bureaucrats running the alphabet soup agencies like the IMF, OECD, etc., and not expect significant increases in bank fees.
Also, Slimy Fwreddy Boy and Stumpy PM Davis know full well that the government's influence over RBC, CIBC and Scotia Bank is seriously compromised and limited by its reckless and spendthrift policies. Our minister of finance, none other than Stumpy PM Davis himself, finds it necessary to constantly beg for additional credit facilities and debt covenant waivers from the larger banks controlled from Canada. This is just another reason why our useless politicians can do nothing but bloviate hot air on these most burdensome increases in bank fees.
I laughed at Slimy Fwreddy Boy saying "the internet doesn’t work here" as if he believes this most corrupt Davis led PLP government bears no responsibility for that too, not to mention so many other things plaguing the economic well-being of our nation and its people. Yup, Slimy Fwreddy Boy is indeed as certifiably stupid as they come.
ThisIsOurs 2 months, 3 weeks ago
"*I laughed at Slimy Fwreddy Boy saying "the internet doesn’t work here" *
That did stand out. When sitting govt ministers attempting to take populist stands act as if they're set upon and powerless to do anything. Last week Brave Davis was telling Caricom leaders, ~"we must stop indiscriminate destruction of land".
TalRussell 2 months, 3 weeks ago
Earlier today, Comrade Lincoln Bain, took advantage of being live 'on air' talk radio as a featured guest on The Foundation with Howard Grant -- Trashing the Honorable Cabinet Minister/PLP Party Chairman's -- Usual nastiness in his trashing of Comrade Lincoln Bain's project --- The Coalition of Independents as a being The Coalition Of Insanity. -- Yes?
hj 2 months, 3 weeks ago
How about lowering the taxes for the Bahamian people so they can perharps see some relief? How about stop spending our money(taxes) in traveling for you and your entourage around the world? How about stop giving government contracts to persons whose only qualification is their political connections? Fred was also quiet on the recent NIB increases and the rising costs of business. So stop playing politics
trueBahamian 2 months, 3 weeks ago
While I would agree that banks need better oversight than they are currently getting, what the country needs more than anything is good governance. Tell the bank to be more reasonable with fees and interest rates. Great! But, as a government they need to balance the budget; improve and fix infrastructure; ensure the public healthcare sector have the proper tools and are up to date; provide a better public education to the poor and working class and ensure the national security framework is robust and adequate. Then after all of this, we could appreciate the discussion of bank reform.
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