Are Central East European banking fees egregious?
fraterlcd asked:
Kommercni Banka, owned by Bank Paribas, revealed that over 70% of its 2006 profits were generated from fees on accounts and loan review, whereas less than 30% were from the performance of loans and other financial instruments. In Hungary, banks routinely charge a minimum €1 fee when making a deposit to your account, as well as a min €1 fee for a withdrawal. Other than home mortgages, other forms of lending, including loans to small businesses, are practically non-existent throughout Central Eastern Europe.
Kommercni Banka, owned by Bank Paribas, revealed that over 70% of its 2006 profits were generated from fees on accounts and loan review, whereas less than 30% were from the performance of loans and other financial instruments. In Hungary, banks routinely charge a minimum €1 fee when making a deposit to your account, as well as a min €1 fee for a withdrawal. Other than home mortgages, other forms of lending, including loans to small businesses, are practically non-existent throughout Central Eastern Europe.
Are banking fees in Central Eastern Europe egregious compared to banking fees in other Western European economies? Can banks justify such extraordinary fee levels in light of their extraordinary high levels of profit? Does the importance of fee income to the bank’s P&L diminish the importance of making loans, and stifle Central East European development in the entrepreneurial sector? Is this usurious and illegal and, if so, is this something the EU should address?
Herman
One Response
For unfair competition and to capitalize on the high fee paying account holders and to your balance sheet why change if you could make huge profits with law.