Risk fee

When a bank grants a guarantee, it is incurring a risk by guaranteeing the fulfilment of an obligation that falls on the guaranteed party. This is why, normally, if you are the guaranteed party, you will have to pay a fee for as long as the guarantee is in force.

The risk fee reimburses the bank for the risk it assumes as guarantor.

What requirements must your bank meet in order to charge this guarantee risk fee?

• Remember that the fees charged by banks are unrestricted, except in the case of certain fees that are limited by law.
• In the case of the guarantee risk fee, there is no limit, so each bank can establish the fee it chooses.
• Also, in order for the bank to be able to charge this risk fee, it must be expressly stated in the guarantee contract signed by the parties, in which it must specify the fee amount or rate, the date from which it can be applied and the frequency, where appropriate, of the fee.

The Banco de España has a good practices criterion in relation to this fee.