No-go to mandatory reduction in banking fees... for now

COLOMBIA - In Brief 18 Jun 2019 by Andres Escobar
Barely two days before Congress goes to a 1-month-recess, a bill aimed at reducing banking fees, which had already been approved in the House of Representatives, had a crucial vote on June 18 in the economics committee of the Senate (Comisión Tercera). This bill was a major concern for banks, which estimated a potential reduction in profits of around 0.3% of GDP and had been working hard to convince members of the Comisión Tercera to sink it. The government supported banks, but key members of the Senate and the House were trying to see it through, as part of their political platform going into the regional elections (of governors and mayors) next October. Today's vote was, therefore, a telling indicator of the capacity of banks and the government to counter the efforts of politicians.The voting just took place and, with 12 nays (Comisión Tercera has 17 members in the Senate), the bill is no more. So, danger has been avoided... for now. Another bill moving along the same lines is being pushed by powerful Senator David Barguil, but that battle will be fought another day.

Now read on...

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