Mario Draghi, Governor of the Bank of Italy in his speech says:
The Bank of Italy has completed a broad survey – with more than 500 banks accounting for some 80 per cent of the current accounts supplied to customers of the types and amounts of the fees applied to credit facilities and overdrafts.
The results, transmitted to the Ministry for the Economy and Finance, to which the decrees assigned supervisory tasks regarding bank fees, were made available today on the Bank’s website. They show a marked differentiation among the intermediaries: although there has been an overall reduction, in a third of the cases the charge has increased.
The variety of new fees makes it difficult for customers to compare the different offers. The fee structure needs to be drastically simplified. New legislation to resolve the ambiguities of its predecessor would appear necessary.
What is the solution?
Within days we will submit to the Government a comprehensive regulatory proposal that can lead to clearly stated charges, so that all customers can compare different banks and competition can operate freely, without the impediment of opacity.
The usual solution is let banks make it better for customers. This crisis changed the way we look at complex financial products and realise regulators would have to do something. So nudging the regulations matter.
This is precisely one of the solutions proposed by Thaler/Sunstein as the crisis broke out. They said disclosure is the best kind of credit regulation. Their proposal was for simplifying credit card charges via websites. Luigi Zingales also suggested on same lines for comparing mutual fund fees etc.