Greece to Cap Banks’ Fees on Money Transfers

Greece reportedly aims to cap banks’ money transfer fees, while eliminating consumer bill pay fees.

As Bloomberg News reported, Prime Minister Kyriakos Mitsotakis told lawmakers on Sunday (Dec. 15) that efforts by banks to lower administrative costs for customers “were not enough.”

Mitsotakis announced a cap of €0.50 ($0.52) on banks’ fees for transfers of up to €5,000 ($5,249). Meanwhile, clients won’t see extra charges when they pay their bills.

The report said there’s been rising pressure on Greece’s government to place new controls on the country’s banks after a lengthy debt crisis that required $67 billion in government intervention to keep lenders solvent.

During the first half of 2024, banks in Greece recorded a little over $1 billion in net fee income, up 16% from the previous year, the report said, citing data from the country’s central bank.

The prime minister also said banks will contribute $104 million to reconstruct old schools or the build new ones. Banks will also see the taxes on the properties they manage double.

“Budget means, above all, realism,” Mitsotakis said as the country prepared to vote on its next budget.

In related news, the question of banking fees in the U.S. has led to legal action against the Consumer Financial Protection Bureau (CFPB) after the regulator released its final rule on overdraft services last week.

A group of trade organizations have filed a lawsuit alleging the CFPB overstepped its regulatory authority with this new regulation and that it did not appropriately consider how its actions will hurt consumers.

For its part, the CFPB says it is trying to close what it called an “outdated overdraft loophole” in lending laws. The new rule, scheduled to go into effect in October of next year, requires banks and credit unions with assets of more than $10 billion to follow three paths for their overdraft programs. They can cap overdraft fees at $5; set fees to cover only costs and losses; or comply with standard lending laws.

Meanwhile, PYMNTS wrote earlier this year that as banks pull away from offering traditionally “free” services and products, there’s an opportunity for neobanks to capture market share.

“But that’s only if they craft business models that are less dependent on interchange/transaction volumes in an environment where consumers are fickle about how much they’re spending, and where,” that report said.