Rising incidents of bank robberies

Banks play an important role and their security should be ensured.

VEHARI: Banks are institutions of great importance to society. They help keep the wheels of the economy turning. They secure funds from surplus-producing economic units and divert them to economic units that are short on financing; thereby enhancing opportunities of investment and hence the production possibility frontier of an economy. As a result, the generation of employment takes place. The increased production of goods and services leads to higher income levels, which resultantly means a higher Gross Domestic Product (GDP) for the country – which signals greater prosperity for the nation.

Recently, banks in Pakistan have not been comfortable in their operations. 14 bank robberies took place in 2009 throughout the country. The number increased to 21 in 2010, and remained the same in 2011. A total of Rs84 million was estimated in losses due to the heists that took place in 2011. Of the 21 heists, nine took place in Karachi – the financial capital of the country. Five took place in the twin cities of Islamabad (the federal capital) and Rawalpindi. Four took place in Lahore, and the remaining three in other cities.

It seems that none of the stakeholders is seriously making an effort to curb robberies. First of all, law enforcement agencies, particularly the police, complain that most of their operatives are designated to VVIP duty, so they are left with little manpower to allocate to the security of society.

Secondly, bank managers are not particularly bothered by heists because most of the times the cash is insured. If a heist takes place, insurance companies duly compensate the loss. In most cases, bank managers reach an informal agreement with guards that the latter is not to fire their weapons on bank premises, even if robbers break in.

Thirdly, security guards lack ownership because they are not permanent employees of the bank and are not paid sufficiently by security agencies. Thereby, they do not resist in case bandits attack. Furthermore, they are not well equipped or well trained. Police investigations have revealed that some guards even admitted to not knowing how to fire a gun.

Fourthly, security companies are not concerned because they are not responsible for paying for losses incurred by the bank. It is insurance companies who ultimately pick up the tab. Another reason for their lack of interest is that they are owned by highly influential people who do not consider themselves answerable to any liability claim.

Lastly, banks have been slow to use technology to benefit them in this regard. Evidence reveals that in many cases, security alarms did not work; if they worked, response from security agencies was too delayed to actually prevent robbery.

Given the lack of initiative to avert their incidence, bank robberies are increasing over time. Some investigations have revealed that money robbed is being diverted to outlawed organisations and terrorist groups to buy weapons and fuel terrorist activities in the country.

In order to overcome issues and enhance security, the police should take responsibility and assure the safety of banks. A hotline should be dedicated for bank emergencies, to which security agencies must respond immediately. Additionally, the State Bank should take severe action against banks whose security arrangements are not sufficient. It should rank banks according to security and operational risk management, and fine them if standards are not met. This ranking should also be made public.

Guards hired by banks should be given permanent status and sufficient salaries. As a result, some ownership will be transferred and they will hopefully resist more proactively. Bank management must select security agencies carefully from those available in the market. There should be stringent eligibility criteria for security companies. Security companies should assume greater responsibility and hire personnel on merit. Proper training should be provided to the latter prior to a job assignment, and they should be provided with latest weapons and rewarded sufficiently for good work.

Lastly, security companies and banks should make sure that all safety and surveillance equipment is properly functional. There should be regular equipment tests to keep them in operational condition.

The writer is a lecturer at COMSATS Institute of Information Technology, Vehari Campus.

Published in The Express Tribune, June 4^th, 2012.