Pintard said he would expand Central Bank fee assessment abilities

By RASHAD ROLLE 

Tribune News Editor 

rrolle@tribunemedia.net

Michael 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”.

He accused the Davis administration of “idle talk” and “handwringing” over the issue, noting that Foreign Affairs minister Fred Mitchell has repeatedly railed against banking issues, but the government has not taken action.

“The Free National Movement remains deeply concerned about the ever-increasing consumer fees in the domestic banking sector and, more broadly, the state of retail banking in the Bahamas,” Mr Pintard said in a statement yesterday. “Bahamians continue to pay higher fees, charges, and interest rates, but too many find that the quality and access to banking services keep getting worse.”

“We call on the government to give more than lip service to Bahamians’ concerns regarding the state of commercial banking. Bahamians need more than inflammatory rhetoric from Minister Fred Mitchell — we need action. FNM parliamentarians have challenged him to get his colleagues on board so that we can come up with bipartisan solutions.”

“We need to revise the banking framework to create a sector that is both inclusive and cost-efficient, ensuring banks remain viable while truly serving Bahamians. The FNM respects the need for commercial banks to operate profitably. While we will never propose anything that undermines the viability of this sector, we are deeply concerned about the unchecked fee increases that burden customers without a corresponding improvement in service quality or access.”

Mr Pintard said an FNM administration 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 of the office and that complaints against banks are handled effectively.

He said the FNM would support qualified Bahamains seeking licenses for commercial banking and financial services. He also said his 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.”

CIBC First Caribbean recently announced that personal, business, and corporate customers will face increased bank fees starting September 1. Jacqui Bend, managing director of CIBC Bahamas, told Tribune Business that the fee structure adjustments are due to rising business costs.

In July, the Royal Bank of Canada (RBC) announced a 50-cent decline in debit card transaction fees for ATM transactions involving other banks in the country and purchases at local points of sale.

Last week, Mr Mitchell urged the Central Bank to be more proactive in regulating commercial bank fees, citing the Central Bank of Barbados as a successful example.

In may 2023, Central Bank Governor John Rolle said The Bahamas will cause more problems than it solves if it seeks to cap bank fees without tackling “structural inefficiencies” in the industry.

Gowon Bowe, the Clearing Banks Association chairman, has said that regulating bank fees is a slippery slope and that the country is moving toward communism with such an approach.