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Thread: Local banks. Two tier FD rates. Fairness and transparency raised by MAS.

  1. #1

    Smile Local banks. Two tier FD rates. Fairness and transparency raised by MAS.

    two tier fd rates practiced by local banks. slammed by customers. abs said it is common practice. MAS reminded them of their code of consumer banking practice. i.e. fairness, transparency, accountability and reliability. they are asked to 'carefully consider' the issues or fairness and transparency in the current matter of fd rates.

    Again, MAS has to stepped in as in the case of sgx vs its ceo's potential conflict of interests.

    No regulators - consumers will suffer.

  2. #2

    Default Re: Local banks. Two tier FD rates. Fairness and transparency raised by MAS.

    You cannot have more freedom and also ask for a nanny to walk over everything for you. Ask yourself-- what is more important.

    a. Garmen control everything

    b. Garmen let go, people make their own choices and take matters into their own hands (eg in this case, by boycotting certain banks).

  3. #3
    vince123123
    Guests

    Default Re: Local banks. Two tier FD rates. Fairness and transparency raised by MAS.

    I read MAS's reply not in such a positive light as you did - I read it as "Not my problem, I won't put regulations - you just do as according to what you think the market is right; if you do wrong, then pple wont go to your bank".

    However, a lot of banks are already doing it, so the consumer doens't have much of a choice anyway. The "code" has no teeth and is just for guidance.

    Quote Originally Posted by reachme2003 View Post
    two tier fd rates practiced by local banks. slammed by customers. abs said it is common practice. MAS reminded them of their code of consumer banking practice. i.e. fairness, transparency, accountability and reliability. they are asked to 'carefully consider' the issues or fairness and transparency in the current matter of fd rates.

    Again, MAS has to stepped in as in the case of sgx vs its ceo's potential conflict of interests.

    No regulators - consumers will suffer.

  4. #4

    Smile Re: Local banks. Two tier FD rates. Fairness and transparency raised by MAS.

    i did not read Mas's reply as positive at all. it is reminding banks of its code. 'teethless' as it is, i think there is more to it than for guidance only.

    Quote Originally Posted by vince123123 View Post
    I read MAS's reply not in such a positive light as you did - I read it as "Not my problem, I won't put regulations - you just do as according to what you think the market is right; if you do wrong, then pple wont go to your bank".

    However, a lot of banks are already doing it, so the consumer doens't have much of a choice anyway. The "code" has no teeth and is just for guidance.

  5. #5
    vince123123
    Guests

    Default Re: Local banks. Two tier FD rates. Fairness and transparency raised by MAS.

    Well the way I read it, its jsut MAS's way of saying this:

    To the public: "Nah, see, I did something, so stop writing all these letters cos thats as much as I'll do"

    To the banks: "Aiya, I can't be bothered, you all just do what you want, but be careful dont cause me more complains can already"

    Quote Originally Posted by reachme2003 View Post
    i did not read Mas's reply as positive at all. it is reminding banks of its code. 'teethless' as it is, i think there is more to it than for guidance only.

  6. #6

    Default Re: Local banks. Two tier FD rates. Fairness and transparency raised by MAS.

    Somewhere along the line, consumers have to take things up themselves and stop relying on the Govt. You don't ask the govt to intervene when one reno contractor charges more than another for the same job, so why is this so special?

  7. #7
    Senior Member
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    Default Re: Local banks. Two tier FD rates. Fairness and transparency raised by MAS.

    For SGX case, the CEO's position with Prime was well-knowned in the industry and everyone knows it. Also, SGX already knew it before they decide to employ him. hence, so long as his conduct is ok, no issue esp since he only non-exec director of Prime.

    As for Banks, they charge different rates to everyone to be honest. I can get up to 6% inetrest for FD in foreign currency for my company but u think a retail customer can get more than 3-4%? Fat hope. Banks do that because of the quantum. No diff from discount in our CS mass sale etc.

    So long as their ads are truthful (i do not think they will be stupid enough to say they have other rates to other customers), there's really no stopping them. And i agree with them, from a commercial point of view.

  8. #8

    Smile Re: Local banks. Two tier FD rates. Fairness and transparency raised by MAS.

    in sgx case, if sgx's board and/or its ceo were proactive in averting potential conflicts, then it would not have blown in this manner and its consequences. btw, between 2003 (when he joined sgx) and now, the pace and momentum of china cos seeking overseas listing may not have warrant much attention then. but as the pace picked up, the issue of potential conflict of interest has taken on a more serious implication.

    i do not think those who wrote to the papers are asking directlly for the authorities to step in. more that they are asking for explanation for such practices. when abs responded, their explanation did not help at all as the issue was not addressed. after sometime, mas stepped in.
    Last edited by reachme2003; 15th May 2007 at 08:21 PM.

  9. #9

    Smile Re: Local banks. Two tier FD rates. Fairness and transparency raised by MAS.

    it is common practice for their corporate customers to be granted banking facilities on different terms and conditions. no basis for comparison with individual customers.

    besides, the issue was not foreign currency FDs.


    Quote Originally Posted by nemesis32 View Post

    As for Banks, they charge different rates to everyone to be honest. I can get up to 6% inetrest for FD in foreign currency for my company but u think a retail customer can get more than 3-4%? Fat hope. Banks do that because of the quantum. No diff from discount in our CS mass sale etc.

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