Sometime ago, the then Governor of the Central Bank of Barbados, Doctor Marion Williams, questioned the high fees that were being charged by commercial banks to their clients and seemed to indicate that the matter would be investigated. Surprise, surprise that it is being reported that for the fiscal 2008, the six commercial bank (Barbados National Bank, Butterfield Bank, FirstCaribbean International Bank, RBTT Bank, Royal Bank of Canada RBC and ScotiaBank) collected BDS $91.4 million which represents an increase of 18% over the previous year.
For years now, Barbadians have been complaining about the high fees that are somehow forgotten during initial meetings, but then miraculously appear just before deals are finalised. Given the length of time and the amount of information that must be produced during some of these banking transactions, it is presumable that most clients just shrug their shoulders and agree to pay, as terminating the deal only means another length process and possibly the same of higher fees at the end.
ScotiaBank reported $25.9m, Barbados National Bank $23.6m, FCIB $22.5m, RBTT $5.8m, RBC $8.7m and ButterField Bank $4.9m.
So while banks may have lured us with great offers on loans, mortgages and credit cards, they are certainly making up for it in fees.
