Besides, they also urged banks to diversify into financial advisory services like fund management, and real estate management to enhance profitability.
They argued that since these charges constitute a large portion of banks’ revenue, failure to devise other means to augment the adjustments would impact negatively on them going forward. Provision for loan losses or impairment charges is the writing off of worthless goodwill and it refers to assets that have lost their value.
“As long as that option is there, they will prefer to play it. They are chasing only very few companies, whatever big companies decide to raise, they are willing to offer. But they do not fund growing companies. Also commenting, the Chief Research Officer of Investdata Consulting, Ambrose Omordion, said banks can generate more money at a time of liquidity squeeze if they increase their loans and advances.
He pointed out that some banks’ charges constitute more than 20 per cent of their total revenue at the end of every financial year.
Banks are losing small business lending to Online loan apps. They are comfortable with their deposit & deductions from their account Holders. The online loan apps don't care if you have a job or not, but still trust that the loans will be paid bank with their interest. Bad Eggs