Banking fees caught the attention of the Seimas: Lithuanian companies pay more than those in Latvia or Estonia

Bank charges for Lithuanian companies are a long way from Estonia. Here is the account fee: an average of 3.22 euros. In Estonia – 0.25 euros. Latvians pay even more dearly: 5.47 euros.

To place 20 orders, a company will charge 6.37 euros in Lithuania, 3.65 euros in Estonia and 6.27 euros in Latvia.

A bank card costs an average of 1.77 euros per month to do business in Lithuania. EUR 1.48 in Latvia and EUR 1.63 in Estonia.

In Poland, the fees are usually even lower, where the account fee will be 2.53 euros per month, 20 transfers will cost 1.4 euros and the business card will average 0.12 euros.

The only Lithuanian companies pay to deposit 500 euros in your account at an ATM: 28 cents. In Latvia, Estonia and Poland, this would cost nothing.

If companies accept payments to their account, they would have to pay € 56 in Lithuania, € 78 in Latvia and € 41 in Estonia for the same accepted amount of € 4,000. After all, in Estonia it is customary to deduct 1 percent, in Lithuania – 1.3 to 1.5 percent, and in Latvia – 1.5 to 2 percent. commission.

These data are shown by a comparison made by the Bank of Lithuania and presented to the Seimas Budget and Finance Committee.

Businesses can use bank plans that cover a variety of services. In Lithuania, the cheapest plans start from 4.5 euros, in Estonia – from 3 euros, in Latvia – from 7 euros. The cheapest plans allow you to make a certain number of payments for free, which includes a card.

However, if the plan does not exist or is exceeded, online transfers to another bank will cost between 40 and 41 cents, while in Estonia – 38 cents, in Latvia – between 36 and 57 cents. Online transfers within a bank in Lithuania are the most expensive – 23-29 cents, while in Latvia banks sometimes allow non-payment, and the most expensive transfers would be up to 21 cents. In Estonia, this rate ranges from 5 to 16 cents.

However, Lithuanian residents can use even cheaper service packages, their prices range between 1 and 2 euros per month, while in Latvia and Estonia the range is wider and prices can reach between 1 and 4 euros. Swedes usually pay around 3 euros for a basket and Finns between 5 and 7 euros per month. The cheapest banking services in Poland, where basket prices are lower than in euros, are shown by the Bank of Lithuania.

“Rate structure varies, wide price ranges between countries, individual service comparisons may not be informative,” the review said Wednesday.

Majauskas is confused: he thinks prices should be similar

Mykolas Majauskas, president of the Seimas Budget and Finance Committee, when asked about the material presented to the committee, indicated that it would still be examined.

“In the Budget and Finance Committee, we will examine the issue of fees for banking services, we will familiarize ourselves with the review carried out by the Bank of Lithuania and we will hear the assessment of the situation of the Competition Council”, M. Majauskas was not in too much detail.

The parliamentarian is also surprised by the differences in rates between countries.

“Bank commissions for companies in many cases in Lithuania are higher than in neighboring countries. In my opinion, limited competition is one of the main reasons for this. This provides every opportunity for banks to raise prices for services, knowing that companies have few alternatives. This is undoubtedly suffered by small companies, which, being in a weaker negotiating position, are forced to accept the conditions dictated by the banks ”, says the President.

The deputy is not clear why consumer rates could vary so significantly if the region is dominated by the same groups of banks.

“If the markets are similar in size and regulatory environment, if the same bank uses the same infrastructure, then the marginal costs of service in different Baltic countries should be similar. Therefore, the question naturally arises as to why the prices of services for consumers they differ so much ”, considers M. Majauskas.

He notes that increasing competition in banking services could help lower fees and create more favorable business conditions for Lithuanian companies.

“Therefore, it is important to consistently split the concentration of banks by building a soft red carpet for new market entrants. In recent years, the Bank of Lithuania, together with the Ministry of Finance, has done a great and important work to attracting fintech companies. It’s important not to stop halfway now, “says M. Majauskas.

Lithuanians can charge at least for free

The types of bank basket for residents in the Baltic States are more similar. For example, a debit card in Lithuania costs 0.7-1 euros per month in Latvia it would cost 1.2-1.41 euros, and in Estonia – 0.96-1.5 euros per month.

In Poland, cards are free in many places, as long as income is received or payments are made. In Sweden, prices would range from 0 to 2.34 euros per month, in Finland they would have to pay from 2 to 5 euros, in Ireland, up to 0.2 euros per month.

However, differences arise when using ATMs. In Lithuania, residents can generally withdraw 550 euros or a slightly higher amount from ATMs free of charge, and then 0.4-0.8 percent is applied. tariff.

In Latvia it is possible to withdraw 600-800 euros free of charge, up from the lowest 0.2-0.29 percent. rates. In Estonia, you can withdraw 1000-3000 euros per month for free. In Poland, collection is usually free and only one bank charges a commission for small amounts of up to 25 euros. In Sweden, collection is free, according to a review by the Bank of Lithuania.