L
LequteMan
Guest
The revenues of commercial banks in the country are expected to drop by about N100 billion this year, following the implementation of the zero Commission On Transactions (COT) policy.
The COT policy is the last phase of the “Guide to Bank Charges” policy initiated by the Central Bank of Nigeria (CBN).
Former Executive Director of Keystone Bank, Richard Obire, explained that about N100bn is raked from the annual N550 billion average revenue for the 21 banks, The Nation reports.
He explained that bank’s revenues are made up of interests on loans, which constitute 70 per cent of the total revenue. Fees and commission make up the remaining 30 per cent. Fees and commission covers 30 per cent of the total revenues. COT constituting 60 per cent of income within the segment.
Obire said banks should be moving towards income diversification to shore up their revenue base.
He also said lenders should be creative and think of how to diversify to support activities that generate foreign exchange from local industries. He said aside the COT-free banking, the lenders will face pressure arising from interest revenues on loans.
The COT policy is the last phase of the “Guide to Bank Charges” policy initiated by the Central Bank of Nigeria (CBN).
Former Executive Director of Keystone Bank, Richard Obire, explained that about N100bn is raked from the annual N550 billion average revenue for the 21 banks, The Nation reports.
He explained that bank’s revenues are made up of interests on loans, which constitute 70 per cent of the total revenue. Fees and commission make up the remaining 30 per cent. Fees and commission covers 30 per cent of the total revenues. COT constituting 60 per cent of income within the segment.
Obire said banks should be moving towards income diversification to shore up their revenue base.
He also said lenders should be creative and think of how to diversify to support activities that generate foreign exchange from local industries. He said aside the COT-free banking, the lenders will face pressure arising from interest revenues on loans.
