Two weeks after Prime Minister Mia Mottley mandated Governor of the Central Bank Cleviston Haynes to investigate the issue of bank fees, there is still no clear indication yet as to what ease could be on the horizon for business clients.
While reporting that discussions with the commercial banks have commenced, Haynes opted not to give a firm timeline on when those discussions were likely to come to an end or what measures were being contemplated at this stage.
Commercial banks have already submitted requested information to the Central Bank specific to debit card fees.
“We have initiated discussions with the banking sector. Those discussions are not yet complete so I wouldn’t want to prejudge the outcomes of that at this point,” said Haynes.
“I don’t want to give you a specific timeline but obviously it cannot be allowed to drag out too long, in the context of the overall discussions we are having,” he said.
On July 14, Prime Minister Mia Mottley announced during a national press conference that Government was prepared to make changes to bank fees as it relates to commercial clients.
“What I have learnt is that the move from a flat debit card charge, to a transactional fee, in some instances over three per cent on the transaction, we will have a difficulty because the companies now have to carry that cost in their cost of goods that are being sold as they do their business. This is reflected therefore in their overheads and no doubt it has already passed on to you,” Mottley indicated then.
Responding Wednesday to questions during a review of the island’s economic performance for the first six months of this year at the Central Bank, Haynes explained that last year officials spent a lot of time with banks discussing issues relating to debit card fees.
“At the time when we met with them we said to them quite clearly that this was just an initial foray into looking at the question of the bank fees and that we will revert on a number of matters,” he said.
“Therefore, in the context of what the Prime Minister has raised, we will want to carry out those discussions with the banks, because at the end of the day what we want to be able to achieve is improved competitiveness. I think the issues that we dealt with last year were perhaps more help to the consumer, but I think right now we are faced with complaints from the business community, who in a sense, will feel that what the consumer was paying is now being, in a sense, transferred to them, and how do we get the right balance I think is what is going to be critical going forward,” he explained. (MM)
