Experts Say Downward Review of Bank Charges Will Affect Bottom Line of Banking Industry
Financial experts have said that the downward review of bank charges would affect the net earnings and income of the Banks.
Speaking on Sunday, President and Chairman, Chartered Institute of Bankers of Nigeria (CIBN), Dr Uche Olowu, however noted that the review was designed to ameliorate people’s complaints about the charges.
“So, the implication is that, it will affect the bottom line of the banking industry in the short term.
” But, as more people access financial services, in the long terms, the banks will be better off for it,” he said.
Olowu, advised banks to look for better alternatives to fund the real sectors, adding that creativity and involving in diverse services would give the sector opportunity to make profits.
Also analysts at Cowry Assets Management Limited said cut in most charges and fees of financial institutions by the Central Bank of Nigeria (CBN), affect their capacity to Pay Higher Dividend.
“It appears that the banks have been caught in the middle of their regulator’s unending policies, which it has continued to churn out in order to support the Federal Government in its quest to boost economic growth.
“Also it’s a friendly fire on the banks as CBN feels there is an urgent need to protect customer’s purse in order to bring to bear its financial inclusion objective”, the analysts said in their report on Friday.
The CBN said beginning from January 1, 2020, bank customers would now pay N10 for electronic transfers below N5, 000, and N25 for electronic transfer between N5, 000 and N50, 000, adding that electronic transfer above N50, 000 will attract a N50 charge.
Before the review bank customers paid N50 for electronic transfers below N500, 000.
The apex bank also slashed charges for cash withdrawal via other bank’s ATM to “maximum of N35 after the third withdrawal within the same month” from N65.