CIBN Lauds Low Bank Charges
- Says policy ‘ll boost income long term
The Chartered Institute of Bankers of Nigeria (CIBN) is upbeat the recent downward review of bank charges will positively affect banks’ net earnings and income going forward
CIBN Chairman, Dr Uche Olowu, assured that the review, designed to ameliorate people’s sufferings, has addressed mounting public complaints about outrageous charges within the nation’s banking industry.
“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, at long terms, the banks will be better off for it,” Dr Oluwo told the News Agency of Nigeria (NAN) in an interview.
He however urged Deposit Money Banks (DMBs) to explore other and better alternatives to effectively fund the real sectors.
According to CIBN boss, the banking sector must also seek greater participation and focused involvement in diverse services that would give it the opportunity to make profits.
Recently, the Central Bank of Nigeria (CBN), had announced a downward review of most charges and fees for banking services. The new regime is expected to take effect from January 1, 2020.
It said 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 CBN 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. – NAN
