Acherensua (Brong
Ahafo) 02 December 2002 - The Bank of Ghana (BOG) has revised its directive on
share acquisition in rural banks by individuals and institutions from 10 percent
and 30 percent to 20 percent and 50 percent respectively.
S. Thompson Essel,
Deputy Chief Manager, Banking Supervision Department of BOG, announced this at
the 18th Annual General meeting of the Asutifi Rural Bank at Acherensua in the
Brong-Ahafo Region at the weekend.
He explained that the
new directive was to enable rural banks to meet the required minimum capital
base of 100m cedis and provide adequate cushion to withstand losses as a result
of rising cost of operations.
Essel noted that the
achievements of the banks were measured by their services and efforts in
inculcating banking habits in people living in rural areas.
He charged Directors,
Managements and staff to operate within the rules and regulations of the
Central Bank.
Essel asked rural banks
to take concerns raised by external auditors and in BOG's examination and
surveillance reports seriously and to implement them promptly.
The Central Bank would
continue to implement policies aimed at restructuring, promoting the human
resource capacity and sourcing on-lending facilities to strengthen the capital
base of rural banks.
"The BOG will
also ensure the development and growth of efficient rural banks as integral
part of a vibrant banking system to form the bedrock for sustainable economic development
to improve the living standards of people in rural communities".
Nicholas
Nsiah-Agyapong, District Chief Executive, said the government would pursue
policies to encourage greater mobilisation of funds outside the banking system
and encourage the establishment of new and foreign financial institutions to
improve efficiency and the range of services.
Dr Yaw Opoku-Afriyie,
Chairman of the Board of Directors, said the decline of the Bank had been
arrested through critical supervision and control of expenditure.
He said the Bank
"even broke even last year" and turned a loss of 15.5m cedis in 2000
into a modest gain of 1.5m cedis in 2001 and further increased it to 6.2m cedis
as at the end of October this year.
Dr. Opoku-Afriyie said
the cash and other balances of the Bank also grew by 162 percent from 55m cedis
in 2000 to 209.4m cedis in 2002.
He appealed to the
Bank of Ghana to support rural banks with operational machinery to enable them
discharge their roles efficiently.
GRi…/
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Acherensua (Brong
Ahafo) 02 December 2002 - The ARB Apex Bank is to open four branches in
Takoradi, Bolgatanga, Kumasi and Sunyani by the end of next year to ensure the
easy clearance of cheques by rural banks.
Emmanuel Yaw Sarpong,
Deputy Head, Banking Operations and Treasury of the Bank said 40 rural banks
would have their operations computerised in 2003.
Addressing the 18th
Annual General Meeting of the Asutifi Rural Bank at Acherensua in the
Brong-Ahafo Region, he said it had become necessary for the establishment of a
micro finance desk at the Apex Bank because most rural and community banks had
initiated susu schemes without mechanisms to monitor and safeguard customers'
deposits.
This would give a new
direction to their micro-finance activities and put rural banks in a more
organised position to undertake such programmes, he stated.
Sarpong noted that
most rural and community banks were flouting Bank of Ghana's (BOG's)
requirement to keep five per cent of their total deposits with the ARB Apex
Bank.
So far only 13,503bn
cedis instead of about 21bn cedis, had been deposited, he said and charged
managements of the rural banks to comply or face sanctions.
Eric Osei Bonsu,
Director of the Association of Rural Bank (ARB), urged the banks to work with
the District Assemblies to ensure the proper administration of the various
poverty alleviation interventions.
He noted that with the
falling rate of inflation and the resultant reduction of the base rate of the
traditional banks, rural banks should constantly review their borrowing and
lending rates to become competitive and to offer people living in rural areas
with affordable financial services.
Dr Yaw Opoku Afriyie,
Chairman of the Board of Directors of the Rural Bank said savings deposit went
up from 356.7m cedis in 2000 to 775.7m cedis as at the end of October this
year.
He said loans
increased from 139.6m cedis in 2000 to 166.2m cedis this year while the bank's
share capital had grown from a meagre 15.8m cedis to 37m cedis.
Dr Opoku-Afriyie, who
was Minister of Information and Culture in the Third Republic, said with
prudent management the bank's liquidation position had improved.
The Board Chairman
called on the BOG and the Apex Bank to equip rural banks with basic operating
materials such as telephones and computers to enable them to operate
efficiently.
GRi…/
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