National

Central Bank Costs Analysis Report on Banking Fees

NASSAU, BAHAMAS – A report released by the Central Bank breaks down that each commercial bank has different profile scenarios for students, retirees, and adults.

Published

1 year ago

August 23, 2024

Berthony McDermott

NASSAU, BAHAMAS – A report released by the Central Bank breaks down that each commercial bank has different profile scenarios for students, retirees, and adults.

According to the bank, overall CIBC Bahamas simulated student account transactions remained the least expensive at 80 cents for both digital and physical services deliveries.

CIBC also offers 80 cents for retirees however it changes when it comes to adults. For digital services, BOB offers $6.60 and CIBC offers $4.35 for adult savings.

Meanwhile, Commonwealth Bank, Royal Bank of Canada (RBC), and Scotiabank Bahamas Limited followed, each matching the cost-free digital outcome, but are costlier when clients used physical channels for the service.

The report reveals, however, because CBL does not give ATM cards to student account holders, the fee was less than at other banking institutions. Additionally, CIBC’s total fees were also the lowest for alleged retiree savings products accounts, both for over-the-counter and digital services.

This latest revelation, comes after CIBC came under fire for announcing a hike in its monthly maintenance fees from $2.75 to $3.85.

The report says the central bank is working on several fronts to advance targeted reforms on fee-setting practices for supervised financial institutions.

The Central Bank says where cost is a significant factor, the Central Bank continues to craft reform proposals that would achieve more universal access to the supply of 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, the bank is developing financial inclusion regulations to mandate a “basic” deposit account product for consumers of low economic means.