Demystifying Bank Charges: Legal Implications, Types, And Customer Rights

Bank charges are fees that banks impose on their customers for using their services. They vary depending on the type of service and the bank. Some of the common bank charges include ATM fees, overdraft fees, and maintenance fees.

WHY DO BANKS CHARGE FEES?

Banks are businesses that charge fees to make a profit. They use the fees to cover their operational costs, such as maintaining their computer systems and staffing their branches. Banks also charge fees to discourage customers from engaging in certain activities, such as overdrawing their accounts.¹

In addition, banks in accordance with Basel III – an international regulatory framework for the regulation, supervision, and risk management of the banking sector, and the Central Bank of Nigeria's requirements are expected to maintain certain capital and liquidity positions to guard against the risk of financial shocks.