GRi BEF News Ghana 30 - 10 - 2000
Bank of Ghana
lauds Rural Banks for remarkable performance
Bank of Ghana
lauds Rural Banks for remarkable performance
Jirapa (Upper West Region) 30
October 2000
The Bank of Ghana (BOG) says rural
and community banks have performed remarkably well over the past year, in spite
of the country's turbulent economic situation.
Records available at the Bank
indicate that as at the end of June this year, total deposits of rural banks
stood at 181.09 billion cedis as compared to 107.86 billion cedis at the same
time in 1999, Mr. Daniel Owusu, a Manager at BOG, said at Jirapa in the Upper
West Region on Saturday. The increase represents a 67.9 per cent.
He told the annual general meeting
of the Sonzole Rural Bank that during the same period advances by the rural
banks surged from 52.25 billion cedis to 83.37 billion cedis, an increase of
59.6 per cent.
The level of holding in Ghana
government treasury bills by the rural banks also grew by 52.27 billion cedis
from 52.9 billion cedis to 104.36 billion cedis under the same period.
This he said impacted positively
on the network of rural blanks from 18.28 billion as at the end of June in 1999
to 29.53 billion cedis at the end of June 2000.
Mr. Owusu noted with satisfaction
the performance of the Sonzole Rural Bank, which has been without any of the
serious problems that had caused the demise of some rural banks.
"The Bank of Ghana is
committed to ensuring the development and growth of efficient rural/ community
banks as integral part of a vibrant banking system providing the bedrock for
sustainable economic development".
Mr. Owusu announced that the
proposed apex bank for rural banks to be set up by the BOG would be operational
very soon.
Among other functions it will
offer specialised services to the rural banks, which will widen their scope of
operation through general acceptability of cheques issued, appropriate training
for both directors and staff and inspection of operations to strengthen
internal control practices.
Mr. Bede Ziedeng, Deputy Regional
Minister expressed regret, that "the commercial banks have not covered a
good portion of the three northern regions which have a large number of rural
communities."
On the other hand, the association
of Rural Banks has only eight rural banks in the three regions, a number
considered woefully inadequate in meeting the banking needs of the area.
He therefore appealed to the BOG
and the association of rural banks to open more rural banks in the three
regions.
In his report, Mr. Sylvester Deri,
Chairman of the Board of the Sonzole Rural Bank said despite the unfavourable
economic conditions, the bank made a modest profit of 30.2 million cedis after
taxation as against 36.6 million in 1998.
GRi…/