The National Bank of Serbia (NBS) will list all the services banks offer to clients in order to avoid hidden costs of banks, said NBS Governor Jorgovanka Tabakovic.
Tabakovic said that banks are required by law to specify their costs and present them to clients, whereas failure to do so results in being fined by the NBS and having the non-conscientious bank's name published.
The governor stated for TV Prva that banks had “countless” items they charge for, such as notifications sent to clients, fees for unused checks...
– We will list all the services a bank offers to a client, beginning with its obligation to explain all the advantages and risks in taking out loans in clear terms. They can't make up obligations or define them differently in order to circumvent the NBS' competence – Tabakovic says.
She also adds that citizens need to be well familiar with agreements before they sign them and that there are deadlines within which they can withdraw, even after signing the agreement, such as the 30-day period for insurance contracts.
– There's an unfair business practice, for which the NBS has already fined banks – Tabakovic says and adds that the NBS will publish the names of the banks which have had a dishonest business practice or which have broken the law.
– There's no doubt that banks are finding ways to circumvent this, not all of them and not to the same extent, but they are trying to define, in wider terms, the total costs we call the effective interest rate, and that's why we're here to clarify everything to citizens – NBS Governor says.