New bank charges will affect bottom line of banking industry — CIBN

The Chartered Institute of Bankers of Nigeria (CIBN), said on
Sunday that the downward review of bank charges would affect the
net earnings and income of the Banks.

Dr Uche Olowu, the CIBN Chairman, told News Agency of Nigeria
(NAN), however, 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, at long terms,
the banks will be better off for it,” he said.

Olowu, therefore, said that the banks would look for better
alternatives to fund the real sectors.

He said the banking sector would be involved in diverse services
that would give the sector opportunity to make profits.

NAN reports that the Central Bank of Nigeria (CBN), announced a
downward review of most charges and fees for banking services with
effect from Jan. 1, 2020.

The CBN 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 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.