Ghana will not lose 1.3 trillion - COCOBOD
Prices remain the same on the stock market
Awiebo (Western Region) 5 Oct ’99
New Rural Banks are required to maintain a minimum share capital of 100 million cedis while existing ones are to raise their capital to at least 130 million cedis.
Mr Joseph Boye Clottey, Chief Manager of Banking Supervision of the Bank of Ghana (BOG) told the 17th annual General Meeting of the Nzema Manle Rural Bank at Awiebo that the move was to strengthen the capital base of all the rural banks.
He said the bank was concerned about "common lapses committed by directors and management resulting in the collapse of some of the banks".
He listed embezzlements, fraud, suppression of cheques and granting of unauthorised credit facilities as some of the factor undermining a number of Rural Banks.
The Bank of Ghana, he said, is introducing measures against board members and management staff found guilty of these offences.
He stressed the need for all rural banks to introduce adequate security measures
to protect their assets from the activities of armed robbers.
Mr Clottey commended the Nzema Manle Rural Bank on its performance , saying "the BOG has known it to be fairly satisfactory".
He said it is BOG's policy to ensure that directors of the banks are qualified accountants and economists to ensure that some of the lapses are avoided.
The bank made a profit of 54 million cedis after tax, an increase of 200 per cent over the previous year, Mr John Erzua-Nyenzah, chairman of the board of directors, told the meeting.
He said the bank has instituted a 5.8 million cedis scholarship scheme for needy students in senior secondary schools and tertiary institutions.
It would support five hospitals and clinics in its catchment area with 4.5 million cedis for their health delivery programmes.
GRi../