BANK Negara Malaysia’s (BNM) silence on Citigroup’s proposed move to exit the consumer banking market in the country is regretful, said the National Union of the Bank Employees (Nube). 

“BNM has kept quiet on Citigroup’s latest move, when it should have voiced its displeasure over the bank’s proposed exit from the consumer banking business.

“BNM’s silence may prod other multinational banks to do the same down the road, leading to dire consequences for workers and the rakyat,” Nube secretary-general J. Solomon said in a statement today. 

On Thursday, New York based Citigroup announced it will exit 13 international consumer banking markets, including Malaysia, as it joined other large banks in reporting blowout earnings amid a strengthening US economy.

Citigroup said it will focus its global consumer banking business on four markets: Singapore, Hong Kong, London and the United Arab Emirates.

Citigroup will depart China, India and 11 other retail markets, where “we don’t have the scale we need to compete”, said Citi chief executive officer Jane Fraser, adding the bank was “doubling down” on wealth management, where the growth opportunities are better.

Solomon noted the CEO of Citi Malaysia has not commented on the longer-term job security of staff, arising from the bank’s exit from Malaysia.

“Instead, he merely offered a vague statement that there would be no immediate change to staffing requirements, which is not comforting the workers, as their future prospects with the bank are in serious doubt.

“There was no prior engagement with Nube before the announcement on the future of Citibank employees, especially Nube members. The dearth of information and the absence of any clear commitment from Citi to ensure workers keep their jobs is deeply regretted.

“The CEO has invited us for a meeting the following week and we hope to obtain a clearer picture of this global decision undertaken by the bank,” he said.

Solomon said Citi’s latest move to focus exclusively on institutional business is the height of cherry picking and discriminatory business practices.

He said the bank just wants to focus on the big bucks: corporate Malaysia and wealthy individuals.

According to company officials, the number of branches is expected to dwindle as Citigroup divests its properties.

Solomon said face-to-face banking is still a vital component of the financial services sector and must be preserved.

“It is another example of multinationals banks neglecting their obligations to the society and displaying the most appalling discrimination against the have-nots.

“Such decisions are testimony that international banks are choosing to take a predatory path of pleasing investors with profitability and cutting costs, which have led to workers being dumped, through forced VSS, terminations and outsourcing. 

“Such decisions will impact bank workers and customers. Workers with families and financial commitments will be hit particularly hard,” he said. 

Solomon added that the government must review the Financial Services Act and other associated legislations to ensure banks decisions are not based merely on commercial considerations, especially those that impact workers and customers.

Solomon said if such banks cannot operate in Malaysia on a long haul, and only see profits as the reason to do business in this country, then Malaysia should not offer banks with a history of exiting the country opportunities to do business here in the future. – April 18, 2021.