Pierre Gramegna, Minister of Finance;

Luxembourg Minister of Finance Pierre Gramegna has challenged retail banks regarding their pricing policy for the most vulnerable customers.

Following the petition on the pricing policy of financial institutions, Pierre Gramegna invited the heads of the main retail banks in Luxembourg to explain their pricing policy, and more particularly the measures taken for the benefit of their most vulnerable customers.

During the months of November and December 2017 and January 2018, minister Gramegna received the officers of Raiffeisen Bank, BCEE, BGL, Post Luxembourg and BIL at the Ministry of Finance. A comparative study of their offers made it possible to establish that, in the face of competition from neighbouring countries, these banks are charging competitive rates and have already implemented some actions in favour of vulnerable customers.

Particularly with regard to the regular counter transactions made by older customers or those requiring special assistance, some banks offer special pricing conditions. Depending on the establishment, the persons in question may benefit from a reduced rate, or even a free rate, for a certain number of operations, including the manual intervention fees linked to transfer orders executed in the branch and cash withdrawals in euros at the counter.

In addition, some banks offer support, training and conferences to familiarise customers with the use of new technologies, as well as the benefits of digital banking and the electronic means at their disposal.

In order to further improve the comparability of services and to increase the transparency of basic fees related to payment accounts, Pierre Gramegna will submit to the Cabinet of 2 March 2018 a draft Grand-Ducal Regulation implementing the law of 13 June 2017, establishing the national standardised list of the most representative services attached to a payment account. This list will serve as a basis for setting up, during the year, an online price comparison-maker, managed by the CSSF.