Central Bank Clarifies Role in Bank’s Savings-to-Checking Reclassification

The Central Bank of Belize says it did not approve recent changes by Belize Bank Limted and Atlantic Bank Limited that removed interest from basic savings accounts and implemented fresh fees.

Weeks after the rollout, customer accounts were “reclassified” under the new “Full Access” and “Essential” account structures, where salary deposits no longer earn interest and instead attract monthly maintenance charges and transaction fees.

Governor Kareem Michael said the Central Bank did not sign off on the move, stating, “There was no approval sought for Atlantic Bank or any other bank to have done that.”

The shift affects thousands of account holders, particularly those using standard savings accounts for wages. These accounts now function like checking accounts, with fees of about BZ$1.50 monthly and up to BZ$4.00 for teller withdrawals, while earning no returns.

Michael said the Central Bank’s role is limited to setting caps and floors on interest rates, not approving account types. He also pointed to ongoing reforms, including financial consumer protection legislation and credit reporting systems.

Michael said that the Central Bank’s discussions with commercial banks are ongoing as it weighs how to balance fees, digital banking, and consumer protection.