2023-08-25 13:32:00
And globally, with the reduction in services, the increase in operating costs, the reduction in the availability of cash, the low rates on savings: have the banks been ignoring the interests of their individual customers for too long? There is little doubt for Nicolas Claes, expert in savings products and banking services at Testachats. Interview.
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“Banks favor shareholders and not the saver.”
With the State bond with an attractive yield of 2.81%, the government is pushing the banks a little to react, isn’t it? Well Named ?
Yes, it has been reported for over a year. Bank margins are increasing. They are going to announce their results and I am sure that profits will be up, that there will probably be more dividends paid to shareholders or buybacks of shares. They favor the shareholders and not the saver. He gets almost nothing. Everyone has the right to receive a piece of the cake, but here, everything is focused on the shareholder.
Already two billion euros in subscriptions to State bonds: an operation that marks a turning point?
A good move for the Minister of Finance Vincent Van Peteghem, who experienced setbacks with his tax reform…
There are several elements. This increase which wants to compete with savings accounts shows all the same that the policy has failed to really raise the rates within the banks. This campaign demonstrates that failure.
But also a passage to the act after the threats of action vis-à-vis the banks if they did not move, right?
Yes. But in a delimited way. It would have been better to have a higher minimum rate for savings accounts, as demanded by certain parties or certain institutions. There, only those who subscribe can benefit from it. As a reminder, the savings of Belgians in accounts is valued at nearly 300 billion euros.
Was the banks’ argument for not moving audible?
No. It never poses a problem for the sector to get out billions of euros in dividends, but as soon as we talk about savers, the banks take out the argument of fragility, of risks.
Will they really increase their dividends?
They have already done so in 2022, strongly. We’ll see, but I wouldn’t be surprised if they did it this year.
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“You must not sulk your pleasure: savers must benefit from it.”
And at the political level, a comment?
Let’s go back to this other aspect yes: the Minister of Finance failed his tax reform. He needed a hit with the voters. But we must not sulk his pleasure: savers must benefit from it. Afterwards, you don’t necessarily have to put all your savings in government bonds.
Good plan for Belgium or not?
We know that the debt is high, the deficit too. Let’s say that the success of the State bond shows that Belgium is not too dependent on borrowing on the markets. It’s a good signal.
Have banks ignored the interests of their customers for too long?
Banks are increasingly looking for profitability. So there is a reduction in services. I know that there are fewer trips to agencies, less use of cash. But that excludes a part of the population. Let’s not forget that banks have a minimum public service mission. They tend to detach from it. However, the State intervenes when the sector is in difficulty.
Will we see a rate hike or will the banks ignore the signal?
We’ll see. In the meantime, it is the small banks that are the most affected, the most challenged by the State note. The big ones, potentially, don’t care, but they won’t say so. But I really hope I’m wrong.
For information, to subscribe to the State bond, it is possible to go directly through the Federal Debt Agency and this portalor via your bank, in exchange for a commission.
– > Review the issue of June 7, 2023:
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