A public and industry uproar over new banking fees rolled out by one of Trinidad and Tobago’s largest commercial lenders has pushed the national Central Bank to step in, launching direct talks with Republic Bank just weeks after the rate increases took effect on May 1. The policy change has drawn sharp criticism from business leaders, who warn it will exacerbate existing economic strains on small businesses and ordinary consumers alike.
Central Bank Governor Larry Howai publicly acknowledged the widespread public frustration sparked by the fee adjustments in an official statement released this week, emphasizing that the regulator does not dismiss the intensity of public anger. “Over the years, we have closely monitored fees and charges of commercial banks, and the data on this remains publicly available on our website,” Howai noted, adding that the regulator’s role is far from passive. “Citizens deserve a financial system that works in their interest, and the Central Bank will continue to advocate for that.”
The Central Bank clarified the boundaries of its regulatory authority under existing law: Section 44A(1) of the Central Bank Act only grants the institution power to set maximum and minimum caps for interest rates and fees related to loans, advances and other credit facilities. This mandate does not extend to everyday general service fees, including account maintenance charges, in-branch transaction costs and ATM withdrawal fees. For these services, the Central Bank enforces transparency, fair disclosure and consumer protection standards through its 2018 Market Conduct Guideline for licensed financial institutions, which all banks are required to follow.
To address growing concerns over unjustified fee increases, particularly at a time when domestic commercial banks have posted robust annual profits, the Central Bank confirmed it has recently completed a wide-ranging survey of six of the country’s largest commercial banks. The survey was designed to map out banks’ internal philosophies, governance frameworks and operational practices surrounding fee setting. A final report compiling survey findings and actionable policy recommendations is currently being finalized, and will be shared with the entire banking industry for consultation and implementation once complete.
Among the key consumer protection tools the regulator highlighted are basic low-cost banking accounts, which all commercial banks have been mandated to offer under the 2021 Simplified Due Diligence Guidelines. These accounts are tailored specifically to low-income individuals and micro-enterprises, requiring minimal documentation and charging reduced or no recurring fees. The Central Bank encouraged consumers and small business owners affected by the recent fee hikes to inquire about these accounts at their local branch. The institution also announced it is actively expanding consumer protection support by reviewing the mandate and scope of the Office of the Financial Services Ombudsman, while ramping up outreach through its National Financial Literacy Programme to help citizens understand their consumer rights and compare banking options effectively. It also urged the public to utilize its free, public online Comparative Schedule of Fees and Charges, hosted on its official website, to make informed banking decisions.
While the Confederation of Regional Business Chambers (CRBC) welcomed the Central Bank’s intervention, the industry group argued that the regulator’s current actions fail to address the immediate financial harm already being felt by businesses and consumers following Republic Bank’s fee hike. Small and medium-sized enterprises (SMEs) and everyday customers are already grappling with broad-based cost inflation and tight economic conditions, the CRBC noted, making the new bank fees far more than a minor inconvenience. “Increased banking fees directly affect the cost of doing business and the cost of living. For SMEs in particular, banking services are essential to daily operations, making these additional charges unavoidable and burdensome,” the group said in a statement.
The CRBC made clear it opposes both the timing and the scale of the fee increases, calling for more decisive regulatory action to ensure bank fee structures remain fair, transparent, and aligned with the country’s current economic realities. The group is demanding full transparency from the banking sector to justify the new charges, as well as inclusive multi-stakeholder dialogue between regulators, financial institutions and business representatives to work toward a solution. It also called for targeted relief measures to cushion the blow for SMEs and financially vulnerable consumers, noting that a well-functioning financial system must balance efficiency with equity.
“The stability and growth of Trinidad and Tobago’s economy depend heavily on the resilience of its business community. Any action that increases the cost of doing business without corresponding value must be carefully reconsidered,” the CRBC said, adding that monitoring and direct engagement, while valuable, are not enough without stronger regulatory action and clear policy direction. CRBC chairman Vivek Charran went as far as to say the fee hike marked a departure from the bank’s long history of supporting small businesses. “This is not the Republic Bank I know and that has held the hand of SMEs for some three generations. This is a different bank,” Charran told local outlet the Express.
Concerns over the fee increase first emerged on April 27, when multiple chamber of commerce leaders warned that small businesses would bear the brunt of the new charges after Republic Bank first announced the adjustments. At that time, the CRBC argued that the new fees would add overwhelming pressure to SMEs already struggling with high operating costs, limited foreign exchange access and slowing consumer spending. Multiple local industry leaders echoed that concern this week: Chaguanas Chamber of Industry and Commerce President Baldath Maharaj noted that most SMEs operate on extremely thin margins and cannot absorb the extra costs, meaning the fees will likely be passed directly to consumers through higher prices. Greater San Fernando Area Chamber of Commerce President Kiran Singh added that the size and timing of the hike are particularly concerning given the commercial banking sector’s strong profitability, which stands in stark contrast to the ongoing struggles of the small business sector. Tourism Industry Association of Trinidad and Tobago President Lisa Shandilya noted that small tourism operators including guesthouses and independent tour guides are uniquely vulnerable to the new charges, as they rely heavily on regular digital banking transactions. Owners Dealers Association President Reval Chattergoon called the situation worrying, though not unexpected, amid national policy pushes to transition toward a cashless economy.
As of this week, neither Republic Bank nor Finance Minister Davendranath Tancoo have responded to requests for comment on the controversy. When it first announced the fee increases, Republic Bank stated the changes were “part of our ongoing review of our products and services.”