Estonia's banks continue profitable converting
29.10.2008, 09:58
We don’t plan to convert loans in
accordance to Estonian central bank’s official rate, Swedbank, SEB, Nordea and
Danske said today in joint declaration, ERR News writes.
According to consumer protection banks use unfair trading methods by
converting loan payments according their own commercial rate. The board claims
the banks can exchange euros in central bank with official rate with no
costs.
Banking association noted that consumer protection didn’t pay attention
to fact that regulation concerning currency exchange from central bank is only
for wholesale trade, not for retail trade for consumers.
Continue readingAdvertisement
“A borrower can buy enough euros for loan payment from any enterprise
offering currency exchange. If a borrower doesn’t use that option, bank changes
other currency on borrowers account into euros itself, that agreement is in
contract,” said the declaration.
According to bank association consumer protection’s claim as if banks
have no expenses related to currency exchange is wrong, because it’s possible to
buy foreign currency from central bank without service fee for third banking day
after it has been paid for. In addition to currency buying costs, other
operating expenses add to that, which is normally is in product’s price.