HSBC customers who withdraw cash from ATM machines more than twice a week may have to pay $5 for each additional use under a new charge reportedly being considered by the banking giant.
The bank refused to comment on a Metro Radio report yesterday that it planned to impose the fee. However, an HSBC spokesman confirmed the bank was reviewing fees and charges and would make an announcement next month.
Senior officials at HSBC have already indicated the era of free banking services is over due to the interest rate deregulation in July and the increase it will bring to banks' costs.
Bankers said if HSBC did take the lead in charging ATM users, other banks would not automatically follow suit because about 51 other local banks form an alliance to share the Joint Electronic Tellers Services Limited (Jetco).
'Since Jetco has so many member banks, it will be much more complicated for us to decide whether to charge clients on ATMs,' said Peter Wong Tong-sing, chief executive in Hong Kong of Standard Chartered Bank, a Jetco member.
Lam Lee-yick, executive director of the Liu Chong Hing Bank, also a Jetco member, said that he would not be surprised if HSBC decided to charge for ATM use, as it was a practice in many other countries.