BASSETERRE, St. Kitts - GOVERNOR of the Eastern Caribbean Central Bank. Timothy Antoine has made clear his concerns surrounding the fee increases imposed by Royal Bank of Canada and the possible impact it could have on depositors and the economy.
In the latest episode of the bank’s weekly podcast, Antoine broke his silence by explaining that he is very concerned over the $25 fee increase implemented by the financial institution, adding that for many years the ECCB has been encouraging people to save and invest.
Further, he disclosed that they also pushed the populace in the Currency Union to enter the banking system, and as such the Central Bank is concerned that the increase in fees by any financial institutions could result in depositors, especially the smaller ones, losing their savings.
“If you have a savings account and maybe you are not able to add much and you are getting a charge every month, you are actually losing your savings and the incentives to save,” Antoine pointed out. “We are concerned about the potential loss of real savings and the incentive to save.”
“We are also concerned about the lack of access to the payment system. As a developing region we want to have more and more people in the payment system and in the formal system to transact business; that is a sign of development,” the Governor noted.
It was just recently that a $25 bank charge on savings accounts at RBC and RBTT was imposed on customers.
Customers in St. Kitts and Nevis and the wider sub-region began flocking the bank, purportedly to withdraw their monies and close their accounts.
Governor Antoine suggested that such actions could lead the people in the region to return to the days of investing their monies in their pants or under their mattresses, which he noted is not desirable.
“More than that, it is about the economic impact. We do not want to see a situation where our people are debanked, where they feel that they do not have access to the financial system because of barriers such as fees and charges.”
However, the Governor is urging depositors to weigh their options and see which of the financial institutions best suit their needs and what services they have to offer before any rash decision is made.
He has urged the banks to be reasonable in their fees as much as possible.
Concerns are also being raised by the public over the possible increases by other financial institutions.
