Central Bank of Barbados’ Guidelines For Commercial Banks’ Fees and Charges

Central Bank of Barbados’ Guidelines For Commercial Banks’ Fees and Charges

The Central Bank of Barbados wishes to announce new guidelines governing the fees charged to customers by commercial banks.

The Central Bank advises that after analysis of the fees charged by banks and after discussions with commercial banks, the following guidelines on bank charges become effective from August 11, 2008.  This position was reached with the full cooperation of commercial banks.

• The percentage charged for application/negotiation fees should not exceed 0.5% of the loan amount.
• The percentage used to calculate commitment/standby fees should not exceed 1.0% of the loan amount.
• Charges for transfers via the Real Time Gross Settlement (RTGS) should not exceed $15.

Charges for transfers between banks effected through manager’s cheques should not exceed $15. In addition, following discussions with the banking industry, all commercial banks have agreed to offer customers at least one savings account product that pays interest on a daily basis. The Bank also wishes to remind the public that the following guidelines previously issued are still in effect:

a. No charges should apply for the encashment of cheques written on other banks.

b. No charges are to be applied for the encashment of cheques written on own bank.

c. A maximum charge of 1% is to be applied where the value of coins being received/deposited exceeds $50.00.

d. No charge should apply to third party withdrawals in the case of pensioners.

e. The charge for the notification of dormant accounts should not exceed $10.00 per annum.

f. The charge under (e) should, however, be reversed on acknowledgement by the account holder.  In addition, interest should be paid on all dormant accounts.

g. A bank may apply reasonable charges for withdrawals either at the ATM or over the counter, but such charges should not apply to both services.

h. Customers are not to be charged for making transfers between their accounts at their bank’s ATM.

i. Customers should not be charged for making account inquiries at their bank’s ATM.

j. The minimum balance on which interest is to be paid should not exceed $300.00.

k. Customers and the Central Bank must be notified at least 30 days prior to the implementation of any new charges

The above statement is issued for the information of the Public.

August 7, 2008