The Government is to introduce a new framework to give more people access to a bank account, the Premier said today.

David Burt, the Minister of Finance, also told MPs that proposals on addressing banking fees would be released to the public “in due course”.

He added that reforms were under review to address the lack of diversification in the banking sector and its impact on consumers.

Mr Burt’s administration has consistently stated its desire to see bank fees reduced with more people able to open accounts.

In a statement to the House of Assembly, Mr Burt updated MPs on policy discussions with the banking sector related to financial inclusion and access to bank accounts, along with a general fee approval framework.

He said the Banks and Deposit Companies (Over-the-Limit Fees) Regulations 2024 would be enacted “shortly”.

“It is proposed that changes should be applicable to all clients of a deposit-taking institution. This includes existing as well as new customers,” the Premier said.

“It is proposed that over-the-limit fees would not be charged more than once per billing cycle per product, service or facility.”

Mr Burt said the Financial Action Task Force Guidance on Anti-Money Laundering and Terrorist Financing Measures and Financial Inclusion provided a definition of financial inclusion.

It involved the “provision of access to an adequate range of safe, convenient and affordable financial services to disadvantaged and other vulnerable groups, including low-income, rural and undocumented persons, who have been underserved or excluded from the formal financial sector”.

He added: “Following discussions with the Bermuda Monetary Authority and the Bermuda Bankers Association, the Government intends to introduce a framework regarding matters related to basic bank accounts in accordance with the standards set down by the Task Force.

“The ministry and the authority are close to finalising a framework for discussion.

“The framework will guided by the general principle that persons who are currently underserved, from a banking perspective, or persons who have been de-risked for reasons other than the services banks are legally permitted to offer, should be provided with access to a bank account to facilitate their inclusion in the formal economy.”

Mr Burt said the Ministry of Finance, working with the BMA, intended to “advance a proposal to address how other banking fees could be addressed”.

“Details of the proposal will be released to the public in due course,” he said.

"Apart from fee initiatives, work is also under way to determine how to enhance the banking sector ecosystem.

“Working together with the BMA, different reforms are currently under review to address the lack of diversification in the banking sector and the impact that the current state is having on consumers.

“The immediate touch points for customers range from the mortgage guarantee proposal, to enhanced conduct rules, open banking and digital identification,” the Premier added.

“As per the Government’s normal custom and practice, the proposals are always shared with the Financial Policy Council and the Bermuda Bankers Association, at various stages of the process, to help the Government to better understand which combination of reforms would best meet the Government’s objectives and what the aggregate impact would be.”

• To read the Premier’s statement, see Related Media

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