Brakwa (Central Region) 31 July 2000
The Bank of Ghana (BOG) has advised Rural and Community Banks to initiate bold policies to improve their operations.
Board of Directors and staff of the banks should be innovative, dedicated and honest. These were contained in a speech read on behalf of Mr. Emmanuel Aseidu-Mante, Head of the Banking Supervision Department of the Bank Mr. William Konutse, a Manager of BOG at the 15th annual general meeting of the Breman-Brakwa Rural Bank at Brakwa on Saturday.
Mr. Aseidu-Mante said that Bog has directed Rural and Community Banks to ensure that members of their boards should have attained a certain level of education to enable them to discharge their duties efficiently.
They should not sacrifice qualified staff for inefficiency since the success of their activities depends on a quality workforce.
Mr. Aseidu-Mante stressed BOG's decision to liquidate Rural and Community Banks with solvency and liquidity problems to serve as a deterrent to those, which ignore BOG guidelines.
He also cautioned Rural and Community Banks against pledging part of their treasury bill holdings to the Produce Buying Company (PBC), as guarantee for seed fund and warned that they should be prepared to face sanctions from the Central Bank.
Mr. Asiedu-Mante said that another area of concern to the Central Bank is the practice of entering into leasing agreements with certain companies for the purchase of computers, vehicles and other fixed asserts at great financial cost.
He charged the banks to conduct their operations in a way that would generate more public interest and confidence in the banking system.
Mr. James Nkrumah, President of Central Regional Chapter of the Association of Rural and Community banks congratulated the Board, management, staff and shareholders for maintaining a sound financial policy.
He appealed to BOG to continue to handle issues connected with Rural Banks as "parent and children affairs" and called on the Directors, Management and staff to render honest services to the numerous clients of the Bank.
Mr. Emmanuel K. A. Obeng, Chairman of the Board, commended the Asikuma-Odoben-Brakwa District Assembly for maintaining a healthy relation with the bank.
Mr. Obeng, who is also the Secretary of the Central Regional Secretariat of the Association of Rural and Community Banks told the shareholders that in spite of the loss recorded last year, it was able to declare a total dividend of 27 million cedis at eight cedis per share.
Mr. P. C Arthur, a Senior Manager of the Bank, said that the bank disbursed 439 million cedis as loans to support agriculture, women in development, cottage industries, education, transport, trading and health matters in 1999 as against 361 million cedis spent in 1998.
GRi…/