NASSAU, BAHAMAS — Free National Movement (FNM) Chairman Dr. Duane Sands has reiterated that the party remains committed to a bipartisan approach to banking reform in the country, emphasizing that it will not be distracted by “an entitled few with all manner of vested and special interests.”
His comments were in response to recent remarks by well-known businessman and Chairman of Arawak Homes Chairman Sir Franklyn Wilson, who criticized the stance taken by FNM Leader Michael Pintard on the issue, calling it “talking fool,” while acknowledging that there is a need to reform the country’s commercial banking sector. Sir Franklyn warned against a dictatorial approach towards the banks.
In his response on Tuesday, Sands noted: “We in the FNM are strongly pro-business and pro-consumer. We wouldn’t send armed guards to collect taxes at gunpoint. We believe in a free market that is well-regulated and protected in the interests of consumers.”
Without naming him directly, Dr. Sands referred to the businessman as “one of the most entitled members of the PLP” and a “PLP oligarch.”
“What is undemocratic and dictatorial is not telling Bahamians the full details of the privatization of BPL to certain individuals, who in part are involved in a monopoly on selling oil to BPL. What is undemocratic is not telling the Bahamian people the details of the land swap deal needed to build the new Chinese hospital,” said Sands.
He added: “The FNM looks forward to positive engagement with those in official positions in government, such as the Prime Minister and Minister of Finance. We approach this in a bipartisan manner, without being distracted by an entitled few with all manner of vested and special interests.”
The Central Bank recently stated that it is exploring broader reform proposals on fee-setting practices for financial institutions, such as banks, which could enable the government to legislate consumer protection and market conduct standards applicable to credit products. These reforms could also grant the Offices of the Financial Services Ombudsman statutory independence.
In its latest semi-annual report on the “Cost Analysis on Comparability of Bank Fees” for June 2024, the regulator noted that it’s working on “multiple fronts” to advance targeted reforms on fee-setting practices for supervised financial institutions.
“However, the Central Bank is mindful that these interventions must be framed to preserve the soundness of deposit-taking institutions, which is fundamental to the stability and orderly functioning of the economy,” it said.
“Aside from interim measures under the remit of the Payment System Act (2012), which could take effect in the first half of 2025, broader reform proposals are also being explored that would enable the government to legislate consumer protection and market conduct standards, also applicable to credit products; and which could give the Offices of the Financial Services Ombudsman statutory independence.”
The regulator added: “Where cost is a significant factor, the Central Bank continues to craft reform proposals that would achieve more universal access to financial services in the less populated parts of The Bahamas. This includes identifying where supportive changes are needed in the infrastructure to improve access to both cash and digital payment services, and the role that agency banking could play in lowering supply-side hurdles.
“On affordability and access, within the remit of the Payments System Act (2012), the Bank is developing financial inclusion regulations to mandate a ‘basic’ deposit account product for consumers of low economic means. The targeted approach would be exposed to public consultation and would also be accompanied by proposals to add more transparency to the fee-setting process for digital wallets, credit and debit cards, and transactional accounts, which facilitate payments (savings and chequing accounts).”
Acting Press Secretary Keishla Adderley said last week that Prime Minister Philip Davis will meet with stakeholders to determine a “happy medium” on the need for reform in the commercial banking sector.
Progressive Liberal Party (PLP) Chairman Fred Mitchell has called on the Central Bank to more strictly regulate the service fees charged by commercial banks in The Bahamas. Mitchell, who is also Minister of Foreign Affairs and the MP for Fox Hill, lamented what he believes is a decline in customer service from banks despite higher fees.
His comments came after CIBC Caribbean announced an increase in service fees. Free National Movement (FNM) Leader Michael Pintard has pledged that his administration will introduce banking sector reforms if the FNM wins the next election. Pintard promised to undertake a series of measures to “improve the domestic banking sector.”
These measures would include increasing the Central Bank’s regulatory remit to assess the validity of banking fees, ensuring that fees are transparent and fair, and tasking the Central Bank with streamlining interbank transaction protocols to ensure they are efficient and cost-effective, using best-in-class technology.
In a subsequent Op-Ed released on Sunday, Pintard stressed that the FNM has always supported a strong and vibrant free market in The Bahamas where private businesses can compete and seek profits.
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