Why the state does not interfere in the work of banks
MJH SHIKDER, Unsplash
Finance Minister Gilles Roth has responded to a parliamentary enquiry by MP Sam Tanson on the regulation of bank rates in Luxembourg.
Bank tariffs in Luxembourg are the prerogative of the banks themselves, which autonomously determine their commercial policy. The Ministry of Finance does not intervene in price formation, as tariffs are set on the basis of market competition, in accordance with the legislation on the protection of competition.
Despite the freedom of banks to set prices, the law of 13 June 2017 (based on EU Directive 2014/92/UE) introduced minimum obligations for financial institutions:
- Banks are required to offer customers basic payment accounts with a defined set of services at reasonable rates or free of charge.
- Customers have the right to full transparency regarding bank fees - banks must provide documents with a full list of fees.
- The official CSSF website is active for rate comparison: http://www.frais-compte-paiement.lu.
At the moment, the government is not going to revise the legislation on bank tariffs, and has no plans to interfere with the tariff policy of private banks.
Although banks in Luxembourg set their own tariffs, the law requires them to offer basic payment accounts on reasonable terms and to ensure transparency of fees. So far, the authorities are not planning any new regulation, but customers can compare tariffs on the official CSSF website.
