💰 Cayman Islands government to scrutinize bank fees and conduct

Financial Services Minister André Ebanks has announced that the Cayman Islands Monetary Authority (CIMA) will review the fees charged by retail banks to local customers. This follows the acceptance of a private member's motion by opposition leader Roy McTaggart, which called for banks to adopt a UK-based code of conduct and reduce their fees. If banks do not voluntarily comply, the government is prepared to enforce this through legislation. The motion also urged the government to address enforcement of mortgage-type security over real estate. 🏛️

Ebanks confirmed that amendments to the Registered Land Act, making foreclosure on homeowners more difficult for banks, are on the government's legislative agenda. The premier will update the House on these changes before the end of the year. McTaggart's motion highlighted the increased costs of banking fees in the face of soaring interest rates and called for more transparency and fairness to customers. He noted that the autonomy of modern banks is decreasing, with decisions often made by individuals who are unfamiliar with local customers' needs. 🏠

The opposition leader also pointed out that the increase in interest rates is pushing more people into default on their home loans. He urged the government to implement the Law Reform Commission's recommendations to prevent Caymanians from losing their homes due to the massive hike in interest rates over the last two years. The debate saw MPs discuss a range of complaints about banks they had received from constituents, including a report from CIMA showing that banks made a 25.3% return on their equity last year, double what CUC shareholders received under a government agreement. 💼