63 bank branches shut down this year, up from 43
Published on: Sunday, November 20, 2016
Kuala Lumpur: Some 63 commercial bank branches were closed down nationwide this year, up from 43 last year, the Parliament heard.Deputy Finance Minister Datuk Othman Aziz said the closures were based on the business needs of the banks, such as profitability. He said this did not reflect an economic crisis as the country was expected to grow economically between four and five per cent."Banks need to rationalise their operations, which are based on profitability.
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"Certainly, (closures happen) when the volume of transactions cannot cover their operational costs. So, the closures are based on commercial decisions," he said.Othman said banks only needed to notify Bank Negara Malaysia about the decision to close their branches and a "no-objection" letter would be issued after the central bank had conducted consultations and was satisfied with the findings.He said with the use of automation such as electronic banking, banks would not need to have a big manpower for their operations."Their staff can be redeployed to take up sales duties such as to promote credit cards and housing loans."
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He said 1,425 banking staff were retrenched through the "mutual separation scheme" in the first six months of this year.Stay up-to-date by following Daily Express’s Telegram channel.
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He said the government would ensure that decisions taken by the banks on their employees followed procedures and that no staff was victimised.
