Colombia Antitrust Watchdog Fines Four Banks $106,000 Each

BOGOTA (Dow Jones)--Colombia's antitrust watchdog fined four banks in Colombia, ordering them to pay 207 million Colombian pesos ( $106,000) each as apart of a probe on an alleged agreement to set common fees on credit cards.

The antitrust watchdog fined the country's largest bank, Bancolombia SA (CIB); BBVA Colombia (BBVACOL.BO), the local unit of Banco Bilbao Vizcaya Argentaria (BBV); Banco Santander Colombia SA (SANTANDER.BO), the local unit of Spanish bankBanco Santander de Central Hispano SA (STD); and Banco Davivienda, Colombia'sfourth largest bank in terms of assets.

The banks have refused to disclose how much they collected in credit card feesand how much they lent through credit cards to their customers, Jairo Rubio, thehead of the antitrust watchdog, told Dow Jones Newswires in a telephoneinterview.

"In 2003, we opened an investigation about an alleged cartel between Redeban (the financial company that manages the brand Master Card) and Credibanco (whichmanages Visa) about the fees they charge to businesses," Rubio said. "We arerequesting this information (from) banks to verify they are not involved."

He said, "I don't known why the banks have denied to provide the information.If they didn't do anything wrong, they shouldn't be afraid."

Rubio said if the banks decline to provide the information even after thefine, the regulator will charge daily fines of COP43 million until they do.

If the regulator proves there is a cartel to set fees, the country's financialregulator will then impose a sanction. Rubio declined to provide information onwhat the sanction would be.

Bancolombia said it didn't send the requested information to Rubio's officebecause it considers the financial regulator, not the antitrust regulator, theauthority that oversees banks.

"The fine was imposed in connection with a request (for) information made inan administrative proceeding in which Bancolombia is not involved, and which weconsider inappropriate pursuant to the applicable law," the bank said in astatement Friday.

Rubio said, "The fact that the banks are overseen by the securities regulatordoesn't mean they cannot provide information requested by other regulators likeus or the tax agency."

Constanza Garcia, press officer at BBVA Colombia, said the bank will appealthe decision. Bancolombia also said it could appeal the decision.

Carolina Velasco, press officer at Banco Santander, said the bank will returnphone calls later Monday.

Efrain Forero, chief executive of Banco Davivienda, didn't return phone callsseeking comments.

-By Diana Delgado, Dow Jones Newswires; 571-600-1980; diana.delgado@dowjones.com

(END) Dow Jones Newswires 08-06-07 1239ET Copyright (c) 2007 Dow Jones & Company, Inc.