Dear CEO: feedback on interest rate changes, account acceptance and closures
This letter provides feedback from our monitoring and analysis of interest rate changes, mortgage support, account opening and closures, and customer information, following the Dear CEO letter published in April 2024. It is a reminder of existing standards and does not introduce new regulatory requirements.
Savings interest rates
Banks usually apply rate changes within set timeframes. However, some customers experience delays when switching savings products, often due to manual or branch-based processes. We will continue to monitor how firms communicate savings rate changes, including whether information is clear, timely, and whether customers can switch products without unnecessary barriers.
Mortgage lending and support
Some banks in Jersey have voluntarily adopted parts of the UK Mortgage Charter or similar support measures, although these are not formal requirements in Jersey. Support for customers, such as mortgage holidays, remains limited. Many fixed, low-rate mortgages continue to mature, which means some customers will need to move to products with higher interest rates. Senior management should ensure customer-facing teams are well resourced and that colleagues understand the support options available, so information for customers is clear and accessible.
Account opening, declines, and closures
Digital onboarding has improved, but there are still inconsistencies in how account closures and notice periods are explained. Firms should make sure decisions on account opening, declines, and closures are fair and transparent, supported by good governance and accurate management information, in line with local requirements.
Customer information
Banks have generally made website content clearer and easier to access. Firms should continue to make information on account opening, switching, savings, and mortgage support easy to find, and ensure staff can respond to customer queries.
Local pricing differences
Banks have explained the reasons for pricing differences between Jersey and the UK, and most have given staff formal guidance to help answer customer questions. The Pricing Committee’s governance appears robust based on the meeting minutes we have seen.
Conclusion
The information reviewed shows continued progress in digital capability, transparency, and customer information. Mortgage customers have generally remained resilient, but we recognise that further fixed-rate maturities may create extra pressure for some customers. Many customers are still on low fixed rates, but these products will mature, leading to higher interest rates. We may revisit this later in 2026 as economic conditions change.
We will reduce the frequency of Mortgage Data Collection from monthly to quarterly, with the next set of data due at the end of June.
Senior management may wish to review this letter and consider the good practice examples in Annex B of the April 2024 Dear CEO letter, in light of their obligations under the Banking Code.
Thank you for your cooperation. We would also like to thank all banks who took part in the review.