Friday, December 16, 2011

Bethel Finance: BoI orders banks to cut guarantee fees

www.bethelfinance.com

Bethel Finance news:
Supervisor of Banks David Zaken told Knesset Economics Committee chairman MK Carmel Shama-Hacohen (Likud) today that, following an investigation, he has ordered the banks to make major changes in their bank guarantee fees. There are two key changes: the first is to distinguish between deposit-backed bank guarantees and non-backed bank guarantees; and the other is to reprice the basic fee.

In the wake of a "Globes" investigative report on bank fees, Shama held a committee discussion on the banking system last month, including fees on bank guarantees. After the discussion, the committee told Zaken to examine the issue and present his conclusions to the committee in December.

"Bank guarantee fees evaded supervision for years until they became absurd," said Shama. "The Supervisor's orders bring sanity back to bank guarantee fees, but until I see the changes in practice in the level of bank fees, I will not let up."

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