Prime Minister Davis to Meet with Banking Stakeholders Amid Concerns Over Fees and Services
NASSAU, Bahamas, CMC—Prime Minister Phillip Davis will meet with stakeholders in the banking industry “in the coming days or the coming weeks” amid concerns that Parliament may be asked to intervene to address the increasing fees and services of commercial banks in the Bahamas.
Prime Minister’s Plan
Acting Press Secretary Keishla Adderley told reporters that Prime Minister Davis, who is still recuperating from back surgery, will seek to determine a “happy medium” on the need for reform in the commercial banking sector.
Debate Over Banking Fees
“The prime minister has noted with interest the very vigorous debate that’s been raging concerning banking fees and whether or not they are justified,” she told reporters, adding, “on the one hand, there is the retail banking sector, which is continuing to make a case for preserving free enterprise and ensuring that competition is maintained, on the other hand, of course, there are consumers who are questioning whether these fees are justified.
Prime Minister’s Plans
“Now, the prime minister plans in the coming days or the coming weeks, sometime very soon, to sit down with both sides, sit down with regulators to get a sense of where things stand and to try to come to a happy medium,” she added.
Government’s Position
Last week, Foreign Affairs Minister Fred Mitchell warned that if the Central Bank does not intervene more aggressively, as it has in Barbados, then perhaps the legislature will have to intervene.
Concerns Over Bank Services
Mitchell said the “service to the Bahamian public will not improve if the banks don’t get it.
Regulation of Banking Fees
“They keep forcing us to swallow digitalization when the internet doesn’t work here. The services are second rate at the banks, charging you to keep your money,” he said.
Concerns Over Regulation
However, Gowon Bowe, chairman of the Clearing Banks Association (CBA), has warned that regulating bank fees and services could lead to the country becoming a “communist state” and going down a “very slippery slope.”
View of the Prime Minister
“When we get into this debate about mandating, regulating, or legislating the value of services for private enterprise, we are moving towards a communist state. We are saying that the government is a free market enterprise, and we have to be very careful because that’s a very slippery slope,” Bowe said.
Opposition’s Plan
But Mitchell remains adamant that describing Bowe’s comments as unhelpful and inaccurate “hyperbole.
“The only slippery slope I think it would lead to, in my opinion, is better service. Hyperbole is sometimes useful, but in my view, not in this instance.”
Central Bank of Barbados
In January, the Central Bank of Barbados mandated no fees for electronic transactions, including Automated Clearing House (ACH) and real-time payments (RTP) transfers.
It also called on all commercial banks to offer at least one savings account that is free from fees or charges.
Opposition Leader’s Plan
The leader of the main opposition Free National Movement (FNM), Michael Pintard, said that should his party win the next general election, the financial environment would be reformed to “improve the domestic banking sector.”
Pintard also promises that the party will “revise the banking framework to create a sector that is both inclusive and cost-efficient, ensuring banks remain viable while truly serving Bahamians.”
Criticisms of the Government
Pintard also accused the Davis administration of “idle talk” and “handwringing” on the issue, pointing out that while Mr. Mitchell has frequently criticized banking problems, the government has not taken meaningful action.
Central Bank’s Role
Adderley said that the Central Bank of the Bahamas is the main regulator of commercial banks in the Bahamas, with the government having overall oversight.
“So, we want to sit down and come to a consensus in the public’s interest and to ensure that business is maintained.
“No one wants the banking sector to hurt, so we want to see how we can come to a happy medium and neutralize any conflicts that may have arisen over this issue,” Adderley told reporters.
Conclusion
The Prime Minister’s decision to meet with stakeholders in the banking industry is a significant step towards addressing the concerns over fees and services of commercial banks in the Bahamas. The government’s overall goal is to find a “happy medium” that balances the needs of the banking sector with those of consumers.
FAQs
1. What is the purpose of the meeting between the Prime Minister and stakeholders in the banking industry?
The meeting aims to find a “happy medium” that addresses the concerns over fees and services of commercial banks in the Bahamas.
2. What is the government’s overall goal in addressing banking fees and services?
The government’s goal is to ensure that the banking sector is maintained in a way that benefits both the industry and the public.
3. What is the view of the Central Bank of Barbados on banking fees and services?
The Central Bank of Barbados has mandated no fees for electronic transactions and has called on commercial banks to offer at least one savings account that is free from fees or charges.
4. What is the plan of the opposition party if they win the next general election?
The opposition party plans to reform the financial environment to improve the domestic banking sector and revise the banking framework to create a sector that is both inclusive and cost-efficient.