CBB plans fee ceiling for banking services

Abbas Shirazi CEO Behbehani Brothers

MANAMA: The proposal to put a ceiling on various banking services is being evaluated by the Central Bank of Bahrain and Bahrain Association of Banks.

This came as the CBB and BAB held the 1st meeting to discussed the banks’ proposal to set a ceiling for some banking fees charged by banks from consumers.

The discussions included the support of the BAB’s in principle in this direction, stressing the importance of fees to be proportional to the cost of providing the service. The Assembly in order to reach a common understanding on the remaining fees not agreed upon.

During the meeting both sides discussed the development of banking conditions in the Kingdom of Bahrain and topics of mutual interests.

Rashid Mohammed Al Maraj, Governor of the Central Bank of Bahrain, welcomed the Chairman of the Board of Directors, Adnan Yousef and other members of the Board of Directors, and thanked the Association for their cooperation and efforts to develop banking services and called on the banking sector to invest more in financial technology in the Kingdom of Bahrain.

On the quality and cost of banking services. The CBB Governor commended the Association’s efforts to interact positively with credit rating agencies and to participate in regional and international events.

The CBB also briefed the BAB’s Board of Directors on the new regulatory directives set out in this year’s plan and include detailed requirements in risk management, internal audit, compliance, bank fees and corporate governance, a new methodology for determining financial fines and a new methodology for rating and classifying banks.
The bank also urged banks to pay special attention to handling customer complaints at banks and to adhere to the system of dealing with customer complaints because of its importance in achieving fair dealing. The participants also discussed the importance of taking care of training and qualifying Bahraini cadres in leading positions in the banking sector to prepare the future generation of Bahraini leaders in banking institutions.

The latest developments on the practices of correspondent banks in reducing risks and efforts exerted by the bank and local banks in communicating with concerned parties in international banks to overcome any obstacles in order to ensure the safety and smoothness of banking transactions for all customers.

At the end of the meeting, the Governor thanked the Board of Directors of the Association for the constructive cooperation between the Association and the Bank and the initiatives and efforts made by the Assembly during the past year, which had a good impact in improving the services of the Association.

At the end of the meeting, the Governor renewed his thanks and appreciation to the Chairman and members of the Board of Directors of the Bahrain Banks Association for the cooperation between the Bank and the Association.

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