Banks want to charge for cash withdrawals

Belgium’s banks could soon begin charging for services that are currently free, such as withdrawing cash from ATMs or asking for advice on home loans, according to business daily De Tijd.

Banks are facing a decline in income because of the low interest rate, which has led to pressure on earnings from traditional sources such as mortgages and investment commissions. They are now reviewing their options for charging for normally free services.

The government has imposed a number of rules on free services banks have to provide, but the industry is now pushing to have those rules revised, according to De Tijd. The paper quotes Belfius chair Jos Clijsters: “Banks will have to charge for some of the services they now provide for free. That’s how they become independent of the interest rate. Otherwise the situation becomes untenable. The question is whether customers are ready for that.”

In its 2014 annual report, the National Bank advised banks to charge the real rate for their financial products, rather than offering some services for free in order to attract customers to other paid services.

Kris Peeters, federal minister for economy and consumer affairs, has made it clear he is against any relaxation of the agreement with the banks for cash withdrawals to be free. “Digitalisation of bank services has led to lower costs for the banks,” he said. “That trend must not be reversed.”