The Caribbean Affiliation of Banks Inc (CAB) because the consultant physique and recognised voice for banks and different monetary establishments within the Caribbean has been intently monitoring the current developments in Belize relating to the deadlock between the Belize banks and the Central Financial institution of Belize regarding Apply Route No. 7 of 2023 – Restriction of Charges and Fees within the Home Banking Sector (PD7).
Whereas the CAB absolutely helps the necessity for impartial and prudential regulation of the banking sector, we want to overtly specific concern relating to the diploma of involvement in and affect of the market by the Central Financial institution of Belize through the rules outlined in PD7. It’s effectively evidenced that wholesome competitors inside a sector usually results in higher pricing, improved providers, and a wider vary of choices for customers. Subsequently, the gross limitations imposed on home banks in Belize to competitively have interaction and reply to modifications inside market is disquieting.
The CAB is of the opinion that it’s not throughout the purview of the regulator to affect client conduct however slightly the free operations of the market ought to prevail. An method centered on higher transparency and disclosure of charges is subsequently inspired versus worth setting whereby banks present clear and detailed details about their merchandise, providers, and the related prices. On this vein, customers are empowered to make knowledgeable choices with out undue market affect by the regulator.
We want to state, that although the topic of charges and fees stays a contentious matter not solely in Belize however all through the Caribbean, acknowledgment have to be given to the present working surroundings whereby banks must take care of ever growing prices of compliance, and cybersecurity (as we transition to digital). Banks much like some other enterprise can’t function in a fashion that will be detrimental to their long-term viability and the associated charges and fees for providers rendered are in lots of cases already throughout the lowest worth level. Contemplating the earlier, the fact, merely phrased is that there’s a value to serve.
The place of the CAB on this matter is consistent with views beforehand expressed associated to an identical circumstance. The Affiliation stays dedicated to advocating on behalf of the pursuits of its members and can spare no effort on this regard.
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