The banking and financial authorities are urging HSBC to reconsider the introduction of a new monthly fee which the Consumers Association believes could impact low earners and pensioners.

The Central Bank of Malta and the Malta Financial Services Authority have kicked off discussions with HSBC over the charge for banking services which it is planning on introducing in April.

On Thursday Times of Malta reported that the bank was notifying consumers whether they will have to bear the burden of the €5 monthly fee. 

The fee will not be charged to those who deposit at least €2,300 over three months into any of their accounts. Those aged 61 or more will have to deposit at least €1,250 to avoid the fee. Some, including minors, students, and those who receive disability, medical sickness, or unemployment government assistance benefits are exempt. 

Benny Borg Bonello, president of the Consumers’ Association believes this is the first step for local banks to start charging for services, as is done by other banks abroad.

Banks should instead be paying consumers interest on the money they deposit at the bank, he said, adding that deposit money is not left idle at the bank but is used to provide loans at a much higher rate of interest.

BOV and APS told Times of Malta they had no plans of introducing a similar fee in the near future.

On Friday, the Central Bank and MFSA said in a statement that they have held a joint meeting to discuss HSBC's recent announcement on changes to their customer account fee structure.

"Discussions between the authorities and HSBC are still ongoing.

"The authorities have asked HSBC to reconsider its position. In the meantime, HSBC has agreed to temporarily suspend the customer contact programme in view of these on-going discussions."