The Tribune

By Keile Campbell

Tribune Staff Reporter

kcampbell@tribunemedia.net

FNM leader Michael Pintard has reiterated the need for bank reforms, doubling down on his proposals to change the sector.

In an open letter sent to The Tribune yesterday, Mr Pintard has challenged the government to move beyond discussions and implement substantial changes to create a more dynamic, competitive, and inclusive retail banking environment in The Bahamas.

Last week, he promised that the FNM would reform the banking regime in the country if elected, including expanding the Central Bank’s ability to assess fees and prevent unjustified “junk fees”.

Yesterday, he reiterated the need for reforms the Free National Movement (FNM) believes are necessary.

Mr Pintard suggested simplifying the process for Bahamians to open banks or become authorised financial service providers. He emphasised the need for a clear and transparent application process.

“The application process and criteria will be clear and publicly available, with transparent evaluation mechanisms and timelines. If applicants meet the core requirements, they should be granted a licence to operate,” Mr Pintard said.

To address inefficiencies in the banking sector, Pintard proposed implementing a blockchain-based Know-Your-Customer (eKYC) portal.

He explained: “The Central Bank, in concert with the clearing banks, should develop and implement a blockchain-based Know-Your-Customer (eKYC) portal that would enable all Bahamians and Bahamian businesses to securely upload KYC information with a click of a button.”

The Opposition leader also called for setting ambitious standards for efficient in-bank and inter-bank transactions. He highlighted the current inefficiencies, citing a June 2023 Central Bank survey which revealed that new business account applications took an average of more than two months to process.

Mr Pintard said: “According to a June 2023 survey by our Central Bank, applications for a new business account took, on average, over two months to be processed. Two months! Only 11 percent of accounts were opened in a week or less.”

The opposition leader stressed the importance of updating legislation and policies, especially around home mortgages, to stimulate the housing market.

“The Bahamian government must do its part by updating legislation and policies—especially around home mortgages—that, while well-intentioned, have stifled the housing market,” he said.

The FNM leader also proposed leveraging concessionary financing from multilateral banks to support local banks in lending to Bahamian small and medium-sized businesses.

He said: “The government should better leverage concessionary financing from multilateral banks like the IDB to provide guarantees for local banks lending to Bahamian small and medium-sized businesses. This is crucial for expanding home ownership and increasing capital for Bahamian entrepreneurs.”

Mr Pintard emphasised that these reforms aim to expand banking options for Bahamians, increase home ownership, and provide more capital for Bahamian entrepreneurs. He also stressed the importance of reducing banks’ reliance on fees and charges for income, saying: “It would also help domestic banks focus more on lending, reducing their reliance on fees and charges for income.”

Mr Pintard said similar banking reforms have been implemented in other countries, including the US, Canada, and Barbados.

He said: “Just as other governments have recognised the need to enhance consumer protections and push for more inclusive and more efficient banking services, so must the Bahamian government. Big and small countries are managing to undertake necessary reforms without undermining the viability of their banks.”

He said his party will consult with the Central Bank, commercial banks, civil society, and Bahamian citizens to incorporate their best ideas before proceeding with reforms.

He added: “What we will not do, though, is accept that we cannot improve the efficiency, quality of service, and reach of banking services in The Bahamas. The people of The Bahamas deserve better.”