Banking and financial authorities have no say on charges introduced by banks, parliament was told after the MFSA and the Central Bank urged HSBC to reconsider the introduction of a new €5 monthly fee.

Still, the authorities are committed to protecting consumers and looking at the long-term implications of such fees.

Last week, Times of Malta revealed that HSBC was notifying consumers whether they will have to bear the burden of a new fee. Some customers are exempt. However, the fee has raised concerns about how it will impact low earners and pensioners.

The Consumers’ Association has slammed the fee, insisting that banks should instead be paying interest on the money consumers deposit at the bank.

Bank tariffs are a commercial decision

The Central Bank of Malta and the Malta Financial Services Authority entered discussions with the bank at the end of last week, asking HSBC to “reconsider its position”.

Answering a parliamentary question by Nationalist MP Robert Arrigo on Tuesday, Finance Minister Clyde Caruana said the government, the MFSA and the Central Bank had no power to approve decisions on tariffs. Both the MFSA and the Central Bank said the talks could not be disclosed.

However, a spokesperson said that “while bank tariffs are a commercial decision that is taken by the bank, the MFSA is committed to uphold its role of protecting consumers, while the CBM needs to examine the implications of such fees in respect of monetary policy and financial stability considerations”.

An HSBC spokesperson for HSBC Malta said discussions with both entities were ongoing.