Magnus Onyibe In a society where a few live in luxury while many struggle in poverty, it’s not surprising that feelings of envy, jealousy, and even resentment arise among the less fortunate towards those who are well-off. This is particularly true when it comes to banks, which serve as intermediaries, receiving deposits from those with surplus funds and lending them to those in need—for a fee. However, it seems that these deposit money banks are growing wealthier while their customers are becoming poorer, making them easy targets for criticism.
A notable critic is Mr. Femi Otedola, chairman of Geregu Electricity Power Company, who recently expressed concern that around five banks, likely from the top-tier category, have allegedly spent over $500 million on private jets for their executives. The banks, on the other hand, argue that these jets are necessary for their executives to save time, avoiding the delays and inconveniences of commercial flights.
They also point out that these jets are often part of leasing pools, generating income for the banks when not in use by their executives. An analysis of this situation suggests that the issue of banks making substantial profits while others in society struggle financially is multifaceted. Banks are profit-oriented institutions, primarily focused on delivering returns to their shareholders.
During economic downturns, they often become more cautious, reducing lending and taking on less risk, which can worsen economic hardships..