FNM proposes major banking reforms to address rising consumer fees and service quality

NASSAU, BAHAMAS — The Free National Movement (FNM) has pledged “major reforms” to the banking sector to protect Bahamian consumers, stressing the need to revise the banking framework in response to concerns over unchecked fee increases.

In a statement, the FNM noted its concern over 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,” the statement signed by party leader Michael Pintard read.

“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.”

The party added: “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.”

The FNM has proposed increasing the Central Bank’s regulatory remit to assess the validity of banking fees and ensure that fees are transparent, fair, and not simply “junk fees” without justification.

It also calls for the Central Bank to streamline interbank transaction protocols, ensuring they are efficient and cost-effective, using best-in-class technology.

Additionally, the FNM has proposed increasing the visibility, resources, and reach of the Office of the Financial Ombudsman within the Central Bank to ensure Bahamian consumers are aware of this office and that their complaints against banks and financial service providers are handled promptly and effectively.