Monday, 14 January 2013

Nigerian Banks To Sack More Workers

Business News (Finance) —The Nigerian banking industry may yet again send more of its workers to the job market this year following rising cost of running their business, analysts have said.
The rising overhead cost is mostly a fallout of the Central Bank of Nigeria (CBN) directives to deposit money banks (DMBs) to reduce charges on turnover (COT) from N5 per N1,000 to N3 and the removal of the N100 charged by banks for withdrawal of money through automated teller machines (ATMs).
Part of the fallout is that most banks now keep one ATM operational at a time in a bid to save cost. Most banks that have three or more ATMs have one or more out of operations as the weight of servicing becomes heavier with the removal of N100 charges.
LEADERSHIP investigations revealed that the banks are not happy about the development, but have little choice over the decisions of the regulatory body.
The banks are particularly sore that the decision of not charging fees for usage of their ATMs negates the very principle of banking. According to them, put plainly, banks are usually in the business of buying and selling money.

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