August 13, 2009

Banks are miffed about being forced to continue to obey the law with regard to the opening and closing of branches even when it is not economically expedient for them to do so.Banks believe that the cost of running unprofitable branches far outweighs the social value of keeping them, in view of the prevailing harsh economic environment, which is compounded by the lack of infrastructure, particularly electricity and good road networks.

As a result, bankers have called for the review of Section 6 of the Banks and Other Financial Institutions Act of 1991, as well as other 14 of the 62 sections of the bank law.The contentious sections they cited include sections 15, 16, 17, 19, 20, 21, 22, 27 and 60, in addition to other subsections, which were identified by bankers under the aegis of the Chartered Institute of Bankers of Nigeria, at a round table held on Tuesday in Lagos.