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MINISTER of Investment and Commerce Karl Samuda today revealed that loan service rates for the period reduced compared with 2009, but bank charges increased significantly, some as much as 400 per cent.
Samuda, who was speaking at a press conference held at the Ministry today, reported details from a 2009/2010 Survey of Bank Charges conducted by the Consumer Affairs Commission (CAC), and the Ministry of Industry, Investment and Commerce.
The survey, which was conducted between July 29 and September 17, 2010 forms part of the Promotion of Consumer Protection in the Caribbean Project, which is co-funded by the Inter-American Bank (IDB) and Consumers International (CI).
It records data on 68 items for which the commercial banks charge customers a fee. The categories include personal services, business services, loan services, e-financial services and miscellaneous services. Six banks were surveyed: Scotiabank, National Commercial bank (NCB), RBTT, First Global Bank (FGB), First Caribbean International Bank (FCIB) and Pan Caribbean Bank.
Samuda said the bank charges were increased to compensate for the loss of income following the Jamaica Debt Exchange.
Interest rates on personal loans ranged between a high of 20.5 per cent in the early part of 2010, to 13.25 per cent at the end of the review period. Scotiabank charges the lowest rate on personal loans. On the commercial side, base interest rates ranged from 20.5 per cent to 17.75 per cent in 2010. Both Scotiabank and NCB offer 17.75 on commercial loans.
Local credit card fee increases ranged between 12 per cent at FCIB to 90 per cent at RBTT, while international credit card fees increased between 7 per cent at Scotiabank and 67 per cent at NCB. Minimum interest rates ranged between 29 per cent at FCIB and 49 per cent at RBTT.
The cost for approved transactions were the highest ones for transactions at ABMs. These ranged from $31 at Pan Caribbean to $44.45 at NCB.
For further details on the survey, read tomorrow's Business Observer.
Samuda, who was speaking at a press conference held at the Ministry today, reported details from a 2009/2010 Survey of Bank Charges conducted by the Consumer Affairs Commission (CAC), and the Ministry of Industry, Investment and Commerce.
The survey, which was conducted between July 29 and September 17, 2010 forms part of the Promotion of Consumer Protection in the Caribbean Project, which is co-funded by the Inter-American Bank (IDB) and Consumers International (CI).
It records data on 68 items for which the commercial banks charge customers a fee. The categories include personal services, business services, loan services, e-financial services and miscellaneous services. Six banks were surveyed: Scotiabank, National Commercial bank (NCB), RBTT, First Global Bank (FGB), First Caribbean International Bank (FCIB) and Pan Caribbean Bank.
Samuda said the bank charges were increased to compensate for the loss of income following the Jamaica Debt Exchange.
Interest rates on personal loans ranged between a high of 20.5 per cent in the early part of 2010, to 13.25 per cent at the end of the review period. Scotiabank charges the lowest rate on personal loans. On the commercial side, base interest rates ranged from 20.5 per cent to 17.75 per cent in 2010. Both Scotiabank and NCB offer 17.75 on commercial loans.
Local credit card fee increases ranged between 12 per cent at FCIB to 90 per cent at RBTT, while international credit card fees increased between 7 per cent at Scotiabank and 67 per cent at NCB. Minimum interest rates ranged between 29 per cent at FCIB and 49 per cent at RBTT.
The cost for approved transactions were the highest ones for transactions at ABMs. These ranged from $31 at Pan Caribbean to $44.45 at NCB.
For further details on the survey, read tomorrow's Business Observer.
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