BRIDGETOWN, Barbados, CMC – The newly appointed Governor of the Central Bank of Barbados (CBB), Dr. Kevin Greenidge, says he has received a commitment from several banks to remove fees from some of their products amid a growing storm of criticism from a broad cross-section of the population over banking fees.
Two years ago, the CBB announced that it was taking steps to deal with the vexing issues of bank fees, noting that new guidelines would be sent to the banks.
Barbadians had complained about the charges that included ATM fees, teller fees, minimum balance fees, payment fees, hefty value withdrawal fees, and service charges.
“I have had discussions with the banking association and with individual banks. We discussed the fees. We’ve discussed issues related to opening accounts and various issues voiced by Barbadians and concerned citizens regarding banking,” Greenidge told the online publication Barbados TODAY.
Greenidge, who has pledged to have a second look at the merits and demerits of these charges on consumers, said his initial meetings with the banks also dealt with the need to increase the level and intensity of financial intermediation, which is being able to channel more of the savings in the banking system into productive investment.
“It was like a first date. I told them in no uncertain terms how I operate and my expectations of them, and they told me in no uncertain terms what they expect of me, and we met in the middle.
“Since then, I have had bank commitments to reduce fees in certain areas. Many banks have indicated that they, for example, will now be moving at least one or two savings products where there would be, in most instances, no fee structures. They are still putting that in place.
“But I have committed to do a general review of the entire fee structure as that falls within the ambit of the Central Bank. I will sit with the banks, look at them, see what is reasonable and what is not, and agree on how to remove them,” Greenidge told Barbados TODAY.
The former senior economist with the International Monetary Fund (IMF), who also served as a senior economic advisor to the Barbados government, said he was now at the stage of understanding what was happening and would be working with the banks.
“I know personally, when I first took my position as advisor to the government, that it took me a few hours to open my bank account…and I am an advisor, so it should be easier. I was asked for so much information. Yes, it is onerous.
“For me now, I have to go to the banks and say, what you really [want]? And banks will tell you it is anti-money laundering requirements and they want to reduce risks. And then I would have to say to them, that being as it may, does it have to be that burdensome? Can we decompose and deconstruct? What do you need?
“Because at the end of the day, I also, as a Bajan, as a former active participant in the government in the public space, believe that it is a right of every Barbadian to have access to a bank account and access to financial services as a right, and we cannot make it onerous. I am not saying that the banks have made it onerous. The point is, whatever it is, we have to find a way to make it smooth,” Greenidge said.
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