Presentation to Parliament on Fees
12 Mar 2014
On Wednesday March 12, 2014, National Commercial Bank Jamaica Limited (NCB) made a comprehensive presentation to the Economy & Production Committee of Parliament outlining the rationale and structure of the fees charged for services. This was by way of contribution to the debate on a Resolution dated November 5, 2013 of the Honourable House of Representatives requiring the Bank of Jamaica to conduct a survey on "Fees and Charges of Deposit-Taking-Institutions". Below are some key areas covered in that presentation by NCB's Group Managing Director Patrick Hylton: 1) NCB's fees are based on the cost to provide particular services and are largely subsidized. Fees and charges are levied in order to offset the cost associated with providing the value-added products and services we offer and which the customer benefits from. For example, when a customer uses an ABM to withdraw cash, some of the costs associated with the ABM include: Cost of holding the cash in the vestibule on which we earn no interest. Our current ABMs number 185 with each typically holding millions of dollars in cash. Cost of the courier company loading the cash in the ABM Electricity costs Premises - Each machine is housed in a vestibule that requires cooling. The vestibule is built to specifications and can be located on property not owned by the Bank Communication/data costs Stationery costs Maintenance costs of the ABM Staff costs - to administer the ABM Security costs Licenses, hardware and software costs as well as depreciation Insurance costs, among others Many of our customers benefit from three free transactions per month, and our Midas Plus customers pay no ABM withdrawal fees at all. We subsidize between $5 and $30 per withdrawal for our customers depending on the type of account option they select. To read the full text of Mr. Hylton's presentation, pdf Click here... (459 KB)