Dear Sir,

Everyone knows that Bermuda is the most expensive place to live; we talk about it all the time. The question is, what are we going to do about it?

In my opinion, the first place that the Government should start is with the banks, where corporate greed is alive and well. We are paying inflated rates — at present, the Fed rate is 4.33 per cent, while the Butterfield base rate is 8.5 per cent, nearly double. How is that possible? HSBC advertises a base rate of 4 per cent but depending on the type of loan, you could pay anywhere from 7.5 per cent to 9 per cent.

This is another anomaly: one bank charges an inflated base rate and gives small deductions; the other charges a lower base rate but charges big add-ons. Where else in the world do banks have such latitude to make up their own rules?

One year ago today (January 9, 2025), the Fed rate was 5.33 per cent; today it is 4.33 per cent — four 25 basis-point reductions in one year. What have our banks done? One 25 basis-point reduction in the same period. Why?

Because they can. There are no regulations.

Have you noticed that when rates go up, the banks follow suit soon after, but when international rates go down they sit on it for an extra month or two — if they reduce rates at all. And every now and then we will see the chairman of a bank announcing more huge profits, primarily on the back of interest income, like it’s a great accomplishment.

Well, it’s easy to do when you can charge what you like.

ALAN GAMBLE

Warwick