the fees, charges and collateral securities regarding loans granted by financial institutions, he will, for…
(No. B/820) Mr R. Jhummun (Second Member for Rivière des Anguilles & Souillac) asked the Prime Minister, Minister of Defence, Home Affairs and External Communications, Minister of Finance, Minister for Rodrigues and Outer Islands whether, in regard to the fees, charges and collateral securities regarding loans granted by financial institutions, he will, for the benefit of the House, obtain from the Bank of Mauritius, information as to the regulation mechanism in place in relation thereto, indicating if consideration will be given for the imposition of limitations on the quantum thereof.
Madam Speaker, I am informed by the Bank of Mauritius that, in respect of loans provided by financial institutions, the fees, charges and security requirements are determined by these institutions themselves in line with their internal policies and risk assessment.
37 However, by virtue of Section 6 of the Bank of Mauritius Act 2004, the Bank of Mauritius has the power to regulate the fees and charges in respect of the services provided by these financial institutions and impose such limitation on the quantum of those fees and charges as it may deem appropriate. In this context, the Bank of Mauritius constantly monitors the fees and charges that these financial institutions are imposing. In fact, in accordance with Section 57 of the Banking Act 2004, these financial services should at all times display in a conspicuous place in the public part of their principal place of business and in each of their branches or offices, the rates of the fees or charges being imposed. In addition, with a view to enhancing transparency and enabling the public to make an informed choice, financial institutions are required to upload information on their fees and charges on both their websites and on the website of the Bank of Mauritius. Furthermore, these financial institutions are required to inform the Bank of Mauritius whenever they change their fees and charges. Madam Speaker, the Bank of Mauritius thus examines any change in the fees and charges, and may query them on the reasons for such increases and, if need be, to intervene to safeguard the interest of customers and the public in general. But as I said in the beginning, these are determined by the financial institutions themselves and it depends on their internal policies and the risk assessment.
Thank you. Time is up for the moment. I have been advised that the following PQs have been withdrawn – B/821, B/824, B/825, B/828, B/829, B/830, and B/835. Now we go to questions addressed to hon. Ministers. The hon. First Member for Rodrigues, hon. Ms Collet! COMPULSORY DOGS’ REGISTRATION – PROCEDURES & FEES