This Friday, the PCP questioned the Treasury Secretary about what he considered the interest rate hike’s lack of impact on term deposit remuneration, accusing the bank of “failing to reimburse savings”.
In a question to the Minister of Finance, Fernando Medina, through the Assembly of the Republic, the PCP reminds that “the recent and gradual increases in the reference interest rates set by the European Central Bank (ECB) have led to important increases in bank installments indexed to the Euribor rates, in particular those intended for the payment of mortgage loans”.
However, the party emphasizes that “while banks immediately reflect increases in reference interest rates on home loans, they do not reflect the same increase in interest rates on bank customer deposits.”
In this document, signed by Deputy Duarte Alves, the PCP also states that the bank “used the pretext of low interest rates to unrestrainedly increase the price list of fees and commissions” and with these rates now at 3%, “this shows no sign of a decline in extortion through fees and commissions, nor any intention to increase returns on deposits”.
“In fact, the Portuguese banking system continues to fail to reimburse savings, despite significant profits being made from interest rates – to which are added lewd bank charges and commissions – adding to the dimension of injustice caused by the increase in ECB reference rates”accuses the party.
The PCP reports that it questioned the governor of Banco de Portugal, Mário Centeno, on the issue of interest rates on term deposits at a parliamentary hearing in January, with Centeno reportedly replying that “he believes the bank will reflect this rate hike”. in the reimbursement of deposits”.
“This response demonstrates once again the continued and permanent failure of the so-called independent supervisory model, in which the Banco de Portugal continues to systematically shirk its responsibilities and behave merely as a ‘market observatory’ serving the interests of the sector .”, they criticize.
for PCP, “The government, especially the Ministry of Finance, has a duty to ensure the stability of the financial system, a stability that cannot, in a context like the current one, be translated into extortion of interest rates without some retaliation for the depositors, whose savings forms the basis of leverage and credit allocation”.
The party also states that “it is also up to the government to encourage the increase in interest rates on deposits, especially through other efforts with the financial system and especially public banking”.
In this context, the PCP asks Fernando Medina whether the government has “monitored the evolution of deposit reimbursement rates in the Portuguese financial system”, and what intervention it has had.
On the other hand, the party also asks “how is a stable financial system understood, which provides so little credit, that it cannot guarantee the return of savings”.
Finally, the PCP also wants to know “what efforts the government will make, with the financial system and public banking, to increase the return on deposits, following the trend of interest rates on credit”.
Source: DN
