📣 Cayman Islands opposition party urges government to regulate banking practices

Opposition Leader Roy McTaggart is urging the United Progressive Movement (UPM) government to enforce stricter regulations on Cayman's high street banks. McTaggart proposes the implementation of a mandatory, modern code of practice, amendments to the Registered Land Act to enforce mortgage-type security over real estate, and a review of the fairness of fees charged and interest rates paid on deposits by the Cayman Islands Monetary Authority (CIMA). This comes in response to soaring bank profits amidst increasing fees and struggling borrowers. 🏦

A private member’s motion filed by the Progressives (PPM) leader and seconded by his deputy, Joey Hew, highlights the need for better protection for borrowers. The motion suggests the government encourage the Cayman Islands Banker’s Association to introduce a voluntary banking code that recognises the need for banks to consider cases of financial difficulty sympathetically and positively. If not, the motion calls for government to consider legislation to provide for a mandatory code that will hold the banks accountable and protect their customers, especially those with mortgages. The PPM members are suggesting that the code should be based on the one rolled out in the UK last year. 📜

The opposition has also called on the government to ask CIMA to review and report back to parliament by the end of this calendar year on the fairness of fees charged by retail banks and the fairness of interest rates paid on savings and other deposit accounts. This is to ensure that these rates and fees are fair and equitable for all customers. The call for action comes as interest rates for borrowers have reached the highest levels in decades, while the interest rate paid to customers with savings accounts or cash on deposit has barely moved from as little as 0.1% in some cases. 💰