The Tribune

By EARYEL BOWLEG 

Tribune Staff Reporter 

ebowleg@tribunemedia.net

AFTER CIBC Caribbean reported a 14 percent rise in net income, FNM leader Michael Pintard argued that the bank’s profits highlight the need for regulating bank fees now.

“The strong performance and increasing profitability of Bahamian banks align with the FNM’s stated position that there exists sufficient space within banks’ commercial framework to introduce low-fee/no-fee accounts to low-income earners, students and senior citizens on modest fixed incomes,” he said in a statement on Sunday.

“As regional neighbours Barbados and Belize have done recently, the government of The Bahamas must insist that our Bahamian banks implement these and other measures geared at greater financial inclusion and more affordable banking options for Bahamians.”

CIBC Caribbean reported a net income of $103.6m during the first three quarters of its fiscal year, a 14 percent increase over the previous year.

The bank’s previous announcement that personal, business, and corporate customers would face increased fees beginning September 1 helped spark increased media and political focus on bank fees.

Some have highlighted the efforts of other countries to control fees. On January 2, 2024, Belize’s Central Bank announced that domestic banks were required to limit certain fees. Banks were required to reduce ATM withdrawal fees to 25 cents per transaction.

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 free from fees or charges.

Mr Pintard expressed the opposition’s support for the Central Bank’s consideration of a requirement for all banks to offer a low-fee “basic account” and, separately, to prohibit merchant overcharges on credit card transactions.

He said: “While the FNM will continue to unreservedly support the work of the Central Bank in its efforts to protect consumer interest, we maintain that the Davis Administration must step to the forefront of these efforts. It is time for our government to show true leadership.”

“We call on the Davis administration to articulate a comprehensive package of banking reforms that will eliminate unjustifiable charges, implement low fee/no fee accounts for certain market segments, re-introduce branch banking to Family Island communities, and support new and additional Bahamian investments in banks and other financial institutions.”

In August, Mr Pintard said the FNM would reform the banking regime in the country if elected to power, expanding the Central Bank’s ability to assess fees and preventing unjustified “junk fees”.