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  • 2 days ago
The Central Bank says it is engaging directly with Republic Bank Limited about public concerns over the bank's increase in fees for its customers.

The Central Bank Governor says its role as regulator is not a passive one.

Juhel Browne reports.
Transcript
00:00The Central Bank of Trinidad and Tobago says it is committed to addressing the challenge of increases in bank fees
00:06and charges, especially considering the level of profits declared by the commercial banks.
00:13The Central Bank made the announcement in a statement in which it said it acknowledges public concern generated by recent
00:20pay adjustments implemented by Republic Bank Limited, which took effect from May 1st, 2026.
00:26The Central Bank said it is engaging Republic Bank directly on this matter.
00:32RBL announced increases in fees for regular personal and regular commercial checkbooks, foreign currency drafts, official checks, manager's checks, not
00:43sufficient funds for all account types, overdrawn accounts, unit trust corporation checks, late fees for personal demand loans, and late
00:53fees for personal ordinary loans.
00:55In addition, Republic Bank announced that the debit transaction fee on its optimizer account and personal interest checking account will
01:05allow for 12 free electronic debits, then $1.30 per debit.
01:11RBL further announced that the debit transaction fee for its Savings Plus account will allow two free withdrawals per quarter,
01:19then $4 per debit.
01:21The Central Bank Governor, Larry Hawaii, said,
01:24We understand why citizens are frustrated, and we do not take this sentiment lightly.
01:30Over the years, we have closely monitored fees and charges of commercial banks, and the data on this remains publicly
01:37available on our website.
01:39While our role as regulator is defined by law, it is not a passive one.
01:44Citizens deserve a financial system that works in their interest, and the Central Bank will continue to advocate for that.
01:52The Central Bank said its legislative authority to regulate fees and charges is defined by Section 44A, 1 of the
02:01Central Bank Act, and is limited to fixing maximum and minimum interest rates, fees, and charges on loans, advances on
02:10other credit facilities, and does not extend to general service fees, such as deposit account fees, in-branch transaction charges,
02:20or ATM fees.
02:21The Central Bank's authority, in respect of those fees, is exercised through its market conduct guideline for institutions licensed under
02:30the Financial Institutions Act 2018, and that banks are expected to comply with the guideline.
02:37The Central Bank added that it recently surveyed six commercial banks to obtain a comprehensive understanding of the philosophy and
02:45practices, including governance and controls surrounding bank fees and charges.
02:50The Central Bank added that a report with recommendations on the way forward is being finalized for sharing with the
02:57industry and for implementation following consultation.
03:00The Central Bank said it considers to be important the availability of basic banking accounts required to be offered by
03:08all commercial banks under 2021 simplified due diligence guidelines,
03:14which are specifically designed to ensure that low-income individuals and micro-enterprises can access banking services with minimal documentation
03:23and at a reduced cost.
03:26The Central Bank is encouraging citizens and small businesses affected by the current fee changes to inquire about these options
03:33at their commercial bank.
03:35The Central Bank announced it is actively reviewing the scope and terms of reference of the Office of the Financial
03:42Services Ombudsman to expand the support available to consumers in the financial system.
03:48The Central Bank also said it continues to intensify the reach of the National Financial Literacy Program so that citizens
03:56can, among other things, compare their banking options.
04:00Jewel Brown, TV6 News.
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