By FAY SIMMONS
Tribune Business Reporter
jsimmons@tribunemedia.net
The Opposition’s leader yesterday pronounced himself satisfied that “change is certainly coming” to Bahamian commercial banking following his meeting with the Central Bank governor.
Michael Pintard, speaking after his encounter with John Rolle to discuss possible financial sector reforms, said the industry regulator is working on a number of regulatory reforms. He added that he is “encouraged” that the Central Bank’s views align with the banking reforms that he and the FNM previously suggested.
“He laid out the range of things that they are working on. A number of those things coincide with the position that we have taken,” said Mr Pintard of Mr Rolle.
“So, we are not disabused of any of the views. We are not dissuaded from any of the views that we have. In fact, we are encouraged that we are on the right track in terms of what we have been proposing to the public, and what we have heard from the public is overwhelming support for the position that we are taking.”
Mr Pintard said he now plans to meet with the Clearing Banks Association, the body that represents all licensed Bahamian commercial banks, to discuss reforms and is “confident” changes to the banking sector are underway. “I think change is certainly coming,” he added.
“The Governor of the Central Bank and his team, the efforts they are making right now, we believe will pay dividends. We were confident of that.” Mr Pintard added that Parliament will also assist by passing legislation to create a financial ombudsman so that Bahamians will have a dedicated person to lodge complaints with over alleged mistreatment, maladministration and shoddy customer service.
“In Parliament, we’ll make a difference, because [of] the legislation that will be brought on the ombudsman, who is focused on financial affairs,” said Mr Pintard.
“That ombudsman, once that position is codified in law, because the position presently is held by somebody who serves on a voluntary basis, will make a difference. You will have someone you can complain to in very specific ways about problems you’re having. And we believe that there will be remedies.”
The FNM leader said these efforts will be assisted by the Clearing Banks Association, which can offer suggestions to guide policymakers as they implement legislative changes.
“We also believe that there are members of the Clearing Banks Association who similarly, while they’re concerned about their shareholders and making profits, we think are also concerned about Bahamians and their welfare, and we believe they will contribute ideas and they will guide us policymakers as well, so we can make sensible decisions,” he said.
Mr Pintard added that the Government is profiting from the increase in bank fees, and suggested a portion of the revenue rise should be used to invest in entrepreneurs so they can expand their businesses.
“The Government itself is earning funds from the fees Bahamians are paying, said Mr Pintard. “We’re going to take a look at the amount that government earns and to figure out if there’s some portion of that that can be invested in entrepreneurship so that commercial banks would take greater risk with micro and small businesses, so they can become medium and large business that can add to the banks’ profit as well as their own.”
The renewed controversy over commercial bank fees was sparked by CIBC Bahamas announcing it will be increasing its charges from September 1. Mr Pintard pledged that an FNM administration if elected would ensure bank fees are transparent and fair, “not simply ‘junk fees’ with no justification”.
He said his party would increase the reach and powers of the Central Bank’s office of the ombudsman, ensuring people are aware it exists and that complaints against banks are handled effectively, and would support qualified Bahamians seeking licences for commercial banking and financial services.
Mr Pintard said the party would “work with the banking sector to expand branch banking in Family island communities” and “implement targeted subsidies to ensure that Family islanders have access to banking services, enabling banks to at least break even in remote operations”.
Keishla Adderley, Prime Minister Philip Davis’ press secretary, subsequently announced that the Government will soon meet with commercial banks to address concerns over rising banking fees. She added that Mr Davis is aware of the “vigorous debate” on the issue, and said while commercial banks aim to stay competitive, consumers are questioning the justification for higher fees.
“No one wants the banking sector to hurt so we want to see how we can come to a happy medium and neutralise any conflicts that may have arisen over this issue,” Ms Adderley added.
The Central Bank, in its latest bank fee analysis, said: “The Central Bank is working on a number of fronts to advance targeted reforms on fee setting practices for supervised financial institutions.
“However, the Central Bank is mindful that these interventions must be framed to preserve the soundness of deposit taking institutions, which is fundamental to the stability and orderly functioning of the economy.
“Aside from interim measures under the remit of the Payment System Act (2012) that could take effect in the first half of 2025, broader reform proposals are also being explored that would enable the Government to legislate consumer protection and market conduct standards, also applicable to credit products, and which could give the Offices of the Financial Services Ombudsman statutory independence.”
The regulator added: “Where cost is a significant factor, the Central Bank continues to craft reform proposals that would achieve more universal access to the supply of financial services in the less populated parts of The Bahamas.
“This includes identifying where supportive changes are needed in the infrastructure to improve access to both cash and digital payment services, and the role that agency banking could play in lowering supply-side hurdles.
“On affordability and access, within the remit of the Payments System Act (2012), the bank is developing financial inclusion regulations to mandate a ‘basic’ deposit account product for consumers of low-economic means,” the Central Bank continued.
“The targeted approach would be exposed to public consultation, and would also be accompanied by proposals to add more transparency to the fee setting process for digital wallets, credit and debit cards, and transactional accounts, which facilitate payments (savings and chequing accounts).”
Comments
ExposedU2C 3 months, 3 weeks ago
I suspect many Bahamians like me are just fed up with all of the huffing and puffing Pintard does on topic du jour after topic du jour with no meaningful follow up and results of any kind.
birdiestrachan 3 months, 3 weeks ago
Is this the same Rolle who Told the FNM to sell the stocks buddy , buddy
ThisIsOurs 3 months, 3 weeks ago
"the Government is profiting from the increase in bank fees, and suggested a portion of the revenue rise should be used to invest in entrepreneurs so they can expand their businesses."
I think that's a bad idea. I've noticed in the Bahamas that once a group is making money all ethical considerations go out the window. We've created this dangerous paradigm that where money is concerned all means are necessary, even murder for hire as a source of income apparently.
I saw a very nice picture of a "mogul" who's held up in society as a great success, theyre rubbing shoulders with the PM, giving financial contributions to MPs, beinh promoted in the political ranks, speaking to young kids about the path to success and I thought, what did they do other break the law and pass alot of ill gotten money around, likely laundering much of it to create a "legal" source of funds for bank deposits... what are we doing?
If you're going to reduce the burden on consumers by reducing extraneous banking fees, do that. Dont keep the fees as is then show that "good" is being done by giving a selected group gains off other people's pain.
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