Recession: Banks May Close Down Some Branches
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A number of commercial Banks in the country will close many of its branches described as “unprofitable”, as a result of the current economic recession facing the country.
It was also gathered that most of the banks would lay off hundreds of workers between now and before the year runs out.
Following the economic downturn in the country, a number of bank branches could no longer justify their existence as cost analysis had shown that the financial institutions were spending more on salaries and overheads than the income from the branches.
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An executive director in one of the banks that recently asked some of its workers to go said, “We have laid off some of our staff members but that it still not enough. Many branches are just existing for the sake of being there. They are not generating enough income. What they are bringing in is far less than what the bank is incurring as costs on them.
“We may have to close such branches before the year ends. I know a number of other banks that are planning something similar.”
Some top bank executives, who confirmed the development to our correspondent under the condition of anonymity on Monday, said some lenders might be forced to relieve more workers of their duties before the end of this year.
The revelation came few days after Unity Bank Plc laid off about 220 workers. Diamond Bank Plc and Ecobank had earlier in the year sacked over 3,000 members of their workforce.
