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05.08.2011 Business & Finance

Rural banks urged to strengthen its credit management systems.

By GNA
Rural banks urged to strengthen its credit management systems.
05.08.2011 LISTEN

Kuntanase (Ash), Aug 4, GNA – Rural and Community Banks (RCB) have been urged to review their risk aversion position and strengthen credit management systems to help them channel more funds into loans and advances.

Mr Eric Osei-Bonsu, Managing Director of the ARB Apex-Bank, said this would give them higher returns than investing in treasury bills.

He, however, encouraged borrowers to pay back loans granted them by the banks.

Mr Osei-Bonsu said this in an address, read for him at the 21st annual general meeting of the Bosomtwe Rural Bank at Kuntanase.

He asked the banks to adopt pragmatic and realistic programmes, including the development and deepening of microfinance business to sustain their operations.

They should also focus on effective risk management, customer service and staff training.

“You must endeavour to build a good corporate image for yourselves to ensure the loyalty of your customers and patronage of our products”, he added.

The Managing Director announced that the computerization of the RCB's, under the Millennium Challenge Account (MCA), which took off in year 2009 and ends next year, would roll out into a central database system to be hosted at the Apex Bank Head Office through a Wide Area Network (WAN).

He said the Apexlink Money Transfer - a domestic transfer of funds through the RCBs and ARB Apex Bank branches, would be migrated onto an ICT platform by the end of this month.

This would improve service delivery, increase customer satisfaction and for that matter, patronage of the product.

Mr Osei-Bonsu said the Apex Bank would soon establish a unit to manage share issues for the rural banks, including payment of dividends and other related services.

GNA

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