I trust that fairness and ethical conduct to ensure genuine transparency will be ensured by all concerned. Banks all over the world have been very active to provide a multitude of products and services by way of value addition. This is no doubt necessary in a competitive market.
But earning fee-based income through exorbitant charge, which are not revealed upfront, points to, in some ways, what may be described as ‘undue enrichment’. Dilution of reputation risk Generally, it is assumed that a penalty imposed by regulators would be a source of major reputation risk for the bank concerned, due to adverse public perception of such penalty and would thus be a deterrent.