CBB launches pioneering service on consumer banking service charges

A schedule of such fees charged by individual banks, as well as interest rates applicable for consumer loans, is now available to the public on the CBB website.

With this, the CBB becomes the first central bank in the Middle East region to publish a Banking Services Charges schedule, which will be updated on regular basis.

The Banking Services Charges schedule provides, in % terms or BD value as appropriate, the fees related to a wide range of consumer-related banking services under the following broad headings:

- Account Charges (covering deposits)
- Credit Cards
- Loans
- ATM Cards
- Cheque Collection
- Cash Withdrawal Charges
- Remittance Fees
- Other Charges
- Investment Funds

"The idea behind this pioneering service is derived from the need for more transparency in relation to service charges for the protection of consumers and that such service will enhance competition among banks," said Mr. Khalid Hamad, Executive Director, Banking Supervision, at the CBB.

The availability of such information also helps enable consumers to make informed decisions about the services offered by banks.

The Banking Services Charges schedule is designed to enable consumers to easily compare the fees charged or interest rate levied by various banks for the same service or product, said Mr. Yousif Hassan, Director, Retail Banking Supervision, at the CBB.

The Loans category of the schedule, for example, lists the Annual Percentage Rate (APR) charged by each bank on a consumer loan, as well as the services fees for Administration for Consumer Loans, Administration for Mortgage Loans, Early Settlement, Loan Restructuring, Installment Postponement, besides several other loan-related services.

The Account Charges category lists the Minimum Balance required for savings and current accounts and the bank's charge in case of failure to maintain that balance.

Other information included in this category relates to fixed deposit accounts and the charge for breaking such a deposit, cheque book issuance fees.