Strengthen Internal Control Systems — BoG
The Bank of Ghana (BoG) has charged banks to strengthen their internal control and credit administration systems to contain any looming credit and other associated risks.
The Chief Manager, incharge of the Banking Supervision Department of the BoG, Mr Daniel K. Owusu, made the call at the opening of the Accra General Post branch of the Trust Bank Limited (TTB). The branch is the 15th
TTB outlet in the country.
Mr Owusu said statistics at the BoG indicated that total credits advanced to the economy by the major banks increased from GH¢2.62 billion as of the end of February 2007 to GH¢4.2 billion at the end of February this year.
He said this represented a 61.83 per cent net increase in total loans injected into the economy as against 7.38 per cent increase recorded in the preceding year.
“This is certainly a warning signal for banks to be very circumspect in credit expansion in order to maintain sustainable vibrant banking system, capable of withstanding any magnitude of economic shocks,” he said.
Mr Owusu also cautioned the bank on the inherent risks and other operational challenges associated with branch expansion.
The Managing Director of TTB, Mr Isaac Owusu-Hemeng, said branches in the Greater Accra, Ashanti and Central regions were fully networked, offering customers the benefit of On-line Real-time banking services free of charge.
“TTB, therefore affords its customers the rare opportunity to do business in any branch of the bank without any restrictions and at no fee,” he said.
Mr Owusu-Hemeng said the TTB had initiated a limited branch expansion programme with a rollout of six additional branches with complementary ATMs by the end of the third quarter of the year.
He said TTB was among four banks selected by the BoG to participate in the pilot phase of the e-zwich project.
The Board Chairman of TTB, Mr Albert D. Osei, said TTB had over the years, pursued the goal of becoming the most preferred medium sized bank, providing unparalleled financial services to customers in their chosen markets.
He noted that since its inception, the bank had exhibited excellent financial performance to the admiration of all stakeholders, and said the bank's deposits had increased from GH¢3.3 million in 1996 to a little under GH¢10 million by the end of 2007 with profit before tax increasing by 136,000 per cent to GH¢10.5 million in 2007 from GH¢77,200 in 1996.
The Branch Manager, Corporate Banking of TTB, Mr Osei Osafo-Adjei, said the bank operated on a business model that met the needs of a broad spectrum of their clientele.
Nii Okaija III, Gbese Mantse, who chaired the function, assured the TTB of the co-operation of his people, who are the custodians of the land on which the bank is built.
Story by Musah Yahaya Jafaru
& Edward Turkson