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NCB rejects claims of JDX induced service fee hikes

The island's largest commercial bank has rejected claims that it hiked its service fees to counteract the effects of the Jamaica Debt Exchange, JDX.

National Commercial Bank (NCB) was responding to the findings of a Consumer Affairs Commission survey of bank charges.

The results, which were released on Tuesday, showed that in recent months local banks had dramatically increased the fees they charge their customers.

In once instance, it showed that at NCB, persons are charged $200 to withdraw money from their accounts, a 122% increase when compared to the corresponding period last year.

However, Senior Assistant General Manager at NCB Sheree Martin says contrary to popular belief the bank did not adjust its fees to compensate for the loss in interest income under the JDX.

Miss Martin explained that although NCB reviewed its fee structure in February, this has had little effect on the bank's bottom line.

“Our fee income has increased by $74 million since the JDX, that is 6%, that is not a direct correlation when you look at the fall off in interest income from securities that the bank earns. So the notion that fees have been increased primarily a way to offset reduced interest income from government securities is completely erroneous,” she said.  

Miss Martin explained that NCB's service charges are normally adjusted to cover some of the bank's operational expenses.

“We increase our fees usually once a year. We look at the operating environment, the fact is that in February there was a significant review done by NCB…A number of our services are heavily subsidized, we don’t pass on the full cost of our fees to our customers,” Ms. Martin said.  

She says the bank has been advising customers on ways to avoid paying service fees.

 



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