NASSAU, BAHAMAS — A former chairman of the Clearing Banks Association has stressed the need for a proper analysis of banking fee increases before implementing bank reform, adding that all banks should not be “lumped together.”
Kenrick Brathwaite, a former banker, told Eyewitness News: “Canadian banks are moving away from the Family Islands, they are all increasing fees, but what is the reason they are increasing fees? Is it because they want to increase their profitability or to deter Bahamians from opening certain types of accounts? I don’t like the fact that we seem to be lumping all banks together,” said Brathwaite, noting that Bahamian banks and Canadian banks have different strategies.
“I don’t think all banks have the same strategy. There needs to be a conversation with all the banks to ensure that whoever wants to address the reform knows exactly what the strategy is and why. If the government agrees with the strategy, there is little you can do. If they don’t agree with the strategy, they have to say they don’t agree and tell the banks, if you are going to operate in the Bahamas, we want Bahamians to be treated equitably and have adequate customer service. The Central Bank, as the regulator, has its duties outlined, but that may be something you form a committee for, to have discussions with the Central Bank, the banks, and everyone who has a stake.”
After CIBC Bahamas announced an increase in fees, FNM Leader Michael Pintard released a statement pledging to implement major reforms in the banking sector if the FNM wins the next election.
Progressive Liberal Party (PLP) Chairman Fred Mitchell recently stated that legislative intervention may be needed as it relates to the fees and services of commercial banks in The Bahamas, doubling down on his call for greater regulation of the sector.
Brathwaite said: “If you don’t know what the true problem is, Bahamians’ complaints should be the starting point. Now, you have to do the analysis to determine the real reason banks are increasing fees. An institution increasing fees may not necessarily mean they want to increase profitability; it may be to deter certain types of accounts, and that’s the type of analysis we have to do before we get to banking reform. Banking reform, if we want to make a difference, may be bigger than what they want.”
