CIBN, Banks tackle CBN over ATM’s redeployment

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Following several complaints of Nigeria banks customers on ATM matters, i think the above topic should be of interest to the public.

As the June 30 deadline by the Central Bank of Nigeria (CBN) for banks in the country to redeploy their Automated Teller Machines (ATM) from public places to their premises, draws near, the Chartered Institute of Bankers of Nigeria (CIBN) and banks in the country are engaging the CBN with a view to securing a reversal of the order.

Also, the CIBN has exonerated the CBN from blames for the devaluation of the country’s currency, especially in the face of dwindling oil revenues, adding that the devaluation becomes necessary in order to conserve the country’s foreign reserves.

Speaking in Lagos, last weekend, as part of activities marking his one year in office, the President of CIBN, Dr. Erastus Akingbola disclosed that stakeholders in the banking sector are holding talks with the CBN on the issue and that hopefully, before the end of June, the CBN is expected to make a pronouncement.

According to him, “The decision of the CBN to restrict banks on the siting of ATMs was borne out of its plans to license an additional ATM Consortium, bringing the number of such institutions in the country to two. The ATM consortium would be saddled with the responsibility of siting ATMs, in public places such as hotels, airports among others.”

He said, “The CIBN and banks in the country are holding talks with the CBN on the issue and it is expected that before the end of June, the CBN will come out with a statement that will put the issue to rest. There were quite a number of issues that we brought up in our discussions with the CBN, issues such as the definition of public spaces, public convenience and also the issue of monopoly if it is not allowed to be an all-comers affair.”

Akingbola commended the CBN for its role in strengthening banks in the country and for ensuring stability in the sector, especially in the wake of the global financial crisis.

He attributed the resilience of Nigerian banks to the global economic crisis to the effective monetary policy churned out by the CBN to address certain observed lapses in the wake of the crisis.

According to him, “Nigerian banks were also hit by global credit crunch. The banks suffered from the withdrawal of funds by foreign financial institutions as well as weak government spending which had further diminished the financial flows to the private sector. However, it is gratifying to state here that despite these negative developments, the banking industry in Nigeria has proved comparatively most resilient. It is on record that no bank in Nigeria has collapsed or even defaulted in honouring depositors’ obligations.

The relative resilience and minimal damage to the banking sector was due to the strength of the financial institutions through the aggressive capitalisation policy and the effective regulation of the sector by the CBN.”

He expressed optimism on the ability of Nigerian banks to withstand the pressures brought about by the global financial crisis, and called on the authorities to ensure a stable monetary policy, failure of which may bring about crisis in the sector. He noted that “I believe that the banking industry will sustain this resilience as long as the global financial crisis lasts barring any radical departure from the monetary management style currently in place,”.