Insider Business Cyprus considers decree setting basic bank charges by law

Cyprus considers decree setting basic bank charges by law

A safety net for vulnerable groups of society against bank charges is currently under review by parliament with the House Institutions Committee studying all legal weapons to be used.

The specific issue was discussed on Wednesday in the presence of Central Bank of Cyprus Governor Constantinos Herodotou who briefed MPs on actions taken by the supervisory body as regards bank charges on basic services.

“Finance Minister Constantinos Petrides himself has said in a letter that he is ready to issue a decree (on this) following a study carried out by the Central Bank based on all provisions of the law,” Herodotou said.

Senior Ministry of Finance officer Dionysis Dionysiou confirmed the Minister’s readiness to issue a decree on excessive charges applied by banks.

Herodotou also told Committee members that the Central Bank has contacted Eurozone central banks to find out their policy on bank charges.

And that they have summed up a series of preliminary measures to be recommended to the Minister of Finance.

Legislation that gives the Minister of Finance the power to intervene with a decree to protect vulnerable groups regulates comparability of fees.

Specifically, the law states that in the event that the Central Bank considers that bank fees are unreasonable, it shall make a substantiated recommendation to the Minister of Finance, taking into account at least the following criteria: National income levels, average credit charges institutions in the Republic for the services provided in relation to payment accounts.

The law states that “The Minister may, by Decree published in the Official Gazette of the Republic, ask credit institutions to apply different pricing systems depending on the level of consumer integration in the banking system, which may allow, in particular, more favourable conditions towards vulnerable consumers.”

The law also states that the Minister shall ensure that consumers are given guidance as well as relevant information on available options.

 

Read more:

https://in-cyprus.com/central-bank-says-has-no-say-in-bank-fees-amid-complaints-from-consumers-unions/

Top Stories

Germany demands release of Kremlin critic Navalny

Germany on Monday demanded the release of Kremlin critic Alexei Navalny, detained on Sunday on his return to Russia, and said it would discuss...

Memorial for COVID-19 victims in Washington

Thousands of U.S. flags are seen at the National Mall, as part of a memorial paying tribute to the more than 200,000 people nationwide...

Snow and fog in Troodos, roads open only to 4WD

Police are warning drivers heading to Troodos to be careful because of snow and fog. The Karvounas-Troodos, Platres-Troodos and Prodromos Troodos roads are open only...

Three reasons SMS to 8998 are rejected

According to the Ministry of Research, Innovation and Digital Policy, there are three reasons the system does not approve SMS messages by citizens wishing...

More than 50% of people over 80 in Cyprus already vaccinated or have appointment

More than 50% of citizens aged over 80  in Cyprus have so far received a vaccine against COVID19 or have arranged an appointment to...

Taste

Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...

Mezedes

No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...