Akim Achease (Eastern Region) 04
September 2002- The Bank of Ghana (BOG) has reviewed upwards from 100 to 500
million cedis the minimum paid up capital for a new rural/community banking
license. This is to ensure that the banks are able to finance projects and
maintain reasonable capital.
The Deputy Chief Manager, Banking
Supervision Department of the BOG, Mr Philip E. Cobbina, said this at the 17th
Annual General Meeting of the South Birim Rural Bank at Akim Achease on
Saturday.
He urged the existing
Rural/Community Banks who are expected to have a minimum capital of 100 million
cedis to increase their capital-base through fresh equity subscription by the
public and through appropriate cost control measures.
Mr Cobbina advised the banks to
"sharpen their credit administration skills through training of staff and
adopting measures to strengthen their credit management procedures." The
Chairman of the Board of Directors of the Bank, Mr Robert Amoah, said the bank
recorded a net profit of 300.9 million cedis last year, as against 143 million
cedis in 2000.
Total assets of the bank also
increased from 87 million cedis in 2000 to 143 million cedis for the same period,
an increase of 61 percent. Mr Amoah announced that the bank bought Akuafo
cheques amounting to 236 million cedis last year and appealed to shareholders
to patronise the system to help sustain branches of the bank.
The Bank Manager, Mr Nimako Afrifa,
said loans and advances invested in agriculture, cottage industries, trading,
transport and education in the year under review, was 667 million cedis, an increase
of 240 percent over 2000. He called on farmers to honour their loan obligations
promptly to qualify them for further assistance and to enable others to
benefit.
The Head, Human Resource and
Administration, Association of Rural Banks (ARB) Apex Bank limited, Mr Kenneth
Owusu-Twumasi, said the ARB Apex Bank would offer technical support through its
training programmes to update the knowledge and skills of rural banking
personnel.
He said an interim arrangement had
also been put in place to supply money to the Rural Banks from the Bank of
Ghana currency centres throughout the country, pending the arrival of bullion
vans ordered by the Apex Bank.
GRi…/
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