RURAL BANKS IMPROVE DEVELOPMENT IN RURAL AREAS – REGIONAL MINISTER 27th Oct. 2018
The Acting Upper East Regional
Minister Mr. Frank Adongo Fuseini, has
lauded the impact of rural banks in Ghana emphasising that, the concept of
rural and community banks has over the decades bridged the yawning gap that
hitherto existed between rural and urban financial transactions.
 |
| Cross Section of the Bank's Shareholders at the AGM |
In a speech read on his behalf at the
6th Annual General Meeting of the Bongo Rural Bank over the weekend,
the Minister also observed that, this class of banks had the responsibility of
mobilising savings in rural communities, investing some of the savings for good
returns and to use the funds to provide credit to micro-enterprises in their
operational areas. This the Minister noted, would then trigger the needed growth
and development in the local economies.
Mr. Fuseini also noted that, rural
banks were very critical stakeholders in the successful implementation of
government’s flagship programmes such as the “Planting for Food and Jobs” and
other pro-poor interventions like the Livelihood Empowerment Against Poverty
[LEAP], as funds were mostly channeled through such banks to state agencies to
withdraw and disburse to beneficiaries. Meanwhile, small-holder farmers and
other farmer-groups can usually have quick and easy access to credit facilities
to improve their farming activities in order to increase yields.
He disclosed that there were about
140 registered rural and community banks across Ghana whose operations were
being supervised by the ARB Apex Bank under stringent Bank of Ghana regulations
to safeguard the deposits of customers and other investors who transact
business with the banks.
Touching on the recent challenges
in the country’s financial sector which witnessed the collapse or consolidation
of some banks, he said the Bank of Ghana had identified poor banking practices
coupled with weak supervision from some of its own departments, as the causes
of panic withdrawals and rampant closure of accounts by customers all resulting
in the current uneasiness in the banking sector. He however commended
Management of the Bongo Rural Bank for remaining resilient in the midst of all
these storms noting that, the bank’s brilliant strategies led to its
achievement of a profit of 12 percent at end of year 2017 despite the
depreciation of the Ghana Cedi against all other major currencies at the time.
He charged the Bank to keep up with
its corporate social responsibility drive in helping the health, agriculture
and education sectors in the Bongo District stressing that, the local people, the
District Assembly and by large, the Government of Ghana always appreciate such
complimentary efforts. He also urged the Board and staff of the Bank to reach
out to its shareholders and the general public through intense publicity on
radio and other platforms so as to build their trust in the bank and to assure
them that, the bank was capable of watching over their savings and doing
prudent investments to attract maximum dividends for them.
Board Chairman of the Bongo Rural
Bank, Hon. Azitariga Gaaga Akayerige in his report to the AGM announced that,
the bank ended this year’s 3rd Quarter September 2018 with a Stated Capital
of 1.23 million Ghana Cedis which he noted, exceeded the mandatory minimum
capital requirement set by the Bank of Ghana. He therefore praised Management
and staff of the bank for their sterling performance that resulted in meeting
this threshold.
 |
| Board Chairman, Mr. Gaaga Azitariga [Mic In Hand] Making A Statement |
Mr. Akayerige also revealed that the
bank’s
profit appreciated from 260,535.00 Ghana Cedis in 2016 to 292,295.00 by close
of 2017 representing, a 12 percent rise in its profits. The bank also succeeded
in increasing its Total Assets from 3,609,056.00 Ghana Cedis to 5,747,288.00
Ghana Cedis within the same period. Other financial indices of the bank such as
Total Deposits, also rose to 4,845,658.00 Ghana Cedis in 2017 from the previous
year’s figure of 3,266,239.00 Ghana Cedis. Its Net Worth also went up from the
2016 figure of GH₵205, 718.00
to GH₵608,118.00 as at the end of December, 2017.
The Board Chairman said though his
bank had not made huge profits within the period of reporting, it was able to
deliver on its corporate social responsibility by spending 4,000.00 Ghana Cedis
in support of activities relating to health, culture, education, sports and the
environment. He revealed that the bank had a staff strength of 17 and pledged that,
some of them would be assisted to upgrade their knowledge in the banking sector
at regular intervals.
He made a passionate appeal to
shareholders to buy more shares in order to make the bank more solvent assuring
them that, Management and the Board will continue to adhere to laid-down
regulations in the sector and also, roll out new banking products that could
bring in more dividends on their savings and investments.
Bongo District Chief Executive Mr.
Peter Ayinbisa Ayamga, in a speech read for him by his Coordinating Director,
gave the assurance that as the biggest shareholder in the bank, the Assembly
will continue to lend its support to the bank as well as play effective roles
in its sustenance and further growth. He noted that the bank’s existence over
the years had positively impacted businesses in the district and also, improved
other basic economic activities.
Comments