Vincent Van Peteghem, the Finance Minister of Belgium, has requested an investigation into potential non-compliance with competition regulations by banks regarding interest rates on savings accounts.
According to The Brussels Times, there has been increasing political pressure on the banking sector for weeks to raise interest rates on savings accounts in line with the European Central Bank’s key rates.
The National Bank has communicated their objection to a proposed law that would establish an automatic connection between savings account rates and those of the ECB, in response to a government inquiry.
On May 25th, Economy Minister Pierre-Yves Dermagne suggested starting an inquiry into competition authority.
The Prime Minister, Alexander De Croo, suggested earlier that the government may take action if the banks do not ensure the market is functioning properly.
Belfius, a major bank in Belgium, announced an increase in its savings rate on Wednesday.