Banks Set To Raise Charges To Offset Fall In Interest Income

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Falling net interest income has pushed banks to increase charges and readjust their interest rates on loans and deposits, as rates in the euro area remain at historic low levels.

Along with this, Bank of Cyprus recently introduced new charges which came into effect aiming at encouraging the utilising of digital technology by making the use of cheques and teller services more expensive.

Five months previously, Hellenic Bank also changed its charges based on a similar approach.

Listed in a 16 page-document on its website, Bank of Cyprus’ new charges, highlight that individual customers will be required to pay a EUR €2 fee to have a cheque cashed, a service which was free until last month.

Following this, the cost of cashing cheques at different banks, excluding those of the Central Bank of Cyprus, remains the same at 0.2% of the cheque’s value or a minimum of EUR €5.