Banks madeeasy target

THE EDITOR: The recent demonetisation of $100 bills has again made banks an easy target because of long lines and fees. I am surprised that few people are using the automatic teller machines to make deposits, and also people hoard large sums of cash.

Our lowly educated and hesitant populace apparently fears using ATMs. To be fair, the banks have done a poor job of encouraging people in the line to use these machines.

Those displeased by the service, and cost of maintaining a bank account, may turn to alternative institutions such as Unit Trust and credit unions that also offer the option of 24-hour machines for the convenience of customers.

The Central Bank, through moral suasion or regulation, can push banks to lower fees; in the past it similarly used its influence to force an immediate two per cent drop in the minimum lending rate.

Banks are of course businesses, and entitled to a profit. This profit flows back into the economy to create employment, even to our graduates, also to pay suppliers and labour that furnish infrastructure.

Dividends are paid to shareholders, as well as billions to the State in all kinds of taxes, and the latter contributes to our society by low utility bills and free healthcare.

The undistributed earnings keep banks on a sound financial footing to ensure that the funds and investments of customers and shareholders are safe.

CURTIS MOHOMMED

retired banker