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Competition needed in banking sector

May 28, 2013

Dear Sir,


Royal Gazette article ‘Get ready to pay for more bank fees, charges’, has prompted me to write this letter.

The people of Bermuda may recollect that legislation was put in place many decades ago to protect the interests of Butterfield Bank and the former Bank of Bermuda as both were once owned 60/40 by Bermudian shareholders. Times have changed and Bermudians do not own HSBC and Butterfield Bank has an almost 50 percent interest held by a Canadian Bank. HSBC and Butterfield Bank jointly own a monopoly that is now not in Bermudian’s best interests because they charge exorbitant fees on our Island that they wouldn’t dream of charging in other countries.

I encourage the members of parliament to table legislation that would allow other foreign banks to compete in Bermuda, with a stipulation that they must offer a local retail department. This would introduce competition which would inevitably force bank fees and charges to come down. The establishment of more banks on the Island would stimulate the growth of the economy and create new jobs. It would also serve to provide alternative banking options for international companies who receive less than stellar service with the current two banks.


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Published May 29, 2013 at 9:54 am (Updated May 29, 2013 at 9:54 am)

Competition needed in banking sector

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