August 18th 2024
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. 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.
FNM’s Proposed Actions on Domestic Banking:
As is their manner, we expect the Davis Administration to continue to engage in idle talk
and hand-wringing on this subject. However, when the FNM returns to office, we will
undertake the following actions to improve the domestic banking sector:
Expand Regulatory Oversight:
Increase the regulatory remit of the Central Bank to assess the validity of
banking fees.
Ensure that fees are transparent, fair, and not simply “junk fees” with no
justification.
Task the Central Bank with streamlining interbank transaction protocols, ensuring
they are efficient and cost-effective, using best-in-class technology.
Enhance the Financial Ombudsman Office:
Increase the visibility, resources, and reach of the Office of the Financial
Ombudsman within the Central Bank.
Ensure Bahamian consumers are aware of this office and that their complaints
against banks and financial service providers are handled promptly and
effectively.
Support Bahamian Investors:
Take necessary steps to support suitably qualified Bahamian investors seeking
commercial banking and financial services licenses.
Address concerns regarding the timely and transparent processing of
applications to encourage more competition in the banking sector, providing
Bahamian consumers with more choices and better services.
Expand Branch Banking in Family Islands:
Work with the banking sector to expand branch banking in Family Island
communities.
Implement targeted subsidies to ensure that Family Islanders have access to
banking services, enabling banks to at least break even in remote operations
Michael Pintard
Leader, Free National Movement.