A REVIEW OF EXCESSIVE BANK CHARGES

By Nwogboji Emmanuel

The economy of Nigeria is facing various challenges in almost all the sectors; such as manufacturing, educational, agricultural, oil and gas, pharmaceutical, as well as the banking industry.

In Nigerian banking sector, one of the problems that are hindering the overall performance and growth of commercial banks is lost of customers' TRUST...

According to Albert Einstein, whoever that is careless with the truth in small matters can never be trusted with important matters.

As such, without gaining customers' TRUST, the rate of deposits will definitely be affected in banks that over charge the customers; and such could affect other sectors that rely on such banks in financing their business operations. Similarly, the overall economy will continue to regress because banks are the vessels through which all other sectors maintain adequate working capital level as well as liquidity positions.

One way Nigerian banks are losing customers' TRUSTS is through illegal and excessive bank charges.

Bank charges cover all fees charged on customers' accounts. These charges may take many forms, including:
monthly charges for the provision and maintenance of accounts,
charges for specific transactions,
charges for exceeding authorised transaction limits, charges for messages, and so on.

However, the way these charges are made worries all the bank clients. Some even regard these charges as the ways through which banks defraud the customers. This negative perception is reducing their TRUSTS on banks that engage in such ill act.

On the other hand , this negative perception is being nurtured and strengthened by the level of information gap between banks and the clients.

This hiatus has been successfully enthroned into a hydraheaded grotesque that hampers the operations of many commercial banks in Nigeria. Thus, there is need to close this gap by eliminating information asymmetry.

Banks should not just charge customers, but also disclose the justifiable reasons behind every charge.

Banks should provide the customers with a valid transaction report regarding every debit and credit entries at the end of every month.

Banks should avoid multiple charges by critically reviewing their traditional measures as well as the existing softwares and adopt cost efficient approach.

Students and researchers should carry out research projects concerning bank charges in other to sensitize the general public.

Banks should equally produce monthly journals or periodical memos to educate customers on various banking operations.

Finally, the regulatory bodies should equally stand on their toes and breath new life to Nigerian banking industry by initiating realistic policies that will curb all forms illegal bank charges.

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