A CALL has gone out to banks in
The Premier urged banks to monitor loan interest rates and serve customers fairly, insisting that the money raised from the gap between the interest a bank pays on deposits and the rate it charges for loans - which can be as high as 20 per cent - should serve the interests of customers and not just the bank.
"We cannot say that bank interest rates are fair," said
"There are hidden charges and also the terms and conditions are written in English, which sometimes Bahrainis do not fully comprehend."
The union official said that low interest rates would provide immediate relief to customers struggling to meet loan repayments and in the long-run would also help businesses as more people avail themselves of financial services.
Another concern was the sky-high bonuses that some boards of directors awarded themselves, he added.
"What we have found is a trend for boards of directors to take the lion share of profits as rewards for themselves," he said.
"The chief executives and top management take home a good percentage of the bank's profits as bonuses, while other staff get peanuts."
"I think the
Entrepreneur and businessman
"Our economy is still recovering after those events but the interest rates have gone up," said
"We are the oldest banking sector in the region - but are relatively young on the global scene and require proper regulatory measures."
However, when questioned by the GDN, the banking community had a different view on the issue - with
No one from the CBB, which was allocated a monitoring role in the Premier's announcement on interest rates, was available for comment when contacted by the GDN. firstname.lastname@example.org
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