Deviant Rural Banks to be sanctioned by BOG

Akim-Swedru, (E/R), Sept. 7, GNA - The Bank of Ghana has warned Rural and Community Banks that it would not hesitate to apply appropriate sanctions against those of them who contravened the rules and regulations of the Central Bank.

Mr Joseph B. Clottey, Head, Banking Supervision Department, Bank of Ghana, gave the warning at the 14th annual general meeting of the Akim Bosome Rural Bank at Akim Swedru on Saturday.

He said the Bank of Ghana was committed to ensuring the steady growth and progress of rural/community and banks, saying the BOG would, therefore, enforce rules and regulations aimed at instilling sanity into the operations of rural banks.

Mr Clottey, therefore, advised rural/community banks to rectify all operational lapses in their internal control systems that are highlighted through the various supervising activities for the attention of the Boards and Management.

The Chairman of the Board of Directors of the bank, Mr Kwaku Owusu Baah, in his report, said the bank made a net profit of 558 million cedis in the previous year's operations as against 386 million cedis in 2001, representing an increase of 45 percent.

He said due to that performance, shareholders funds increased from 588 million cedis to 1.02 billion cedis in 2002.

Mr Owusu Baah said the bank also improved its performance on deposit mobilisation from 2.3 billion cedis to 5.5 billion cedis in 2002, adding that in the case of loans and overdrafts, an amount of 803 million cedis was made available to customers in 2002 as against 321 million cedis in 2001.

He said as part of its social obligations, the bank was supporting three SSS students in a new scholarship scheme lunched in 2001 while 1.5 million cedis was donated in support of the development of a community library with another one million cedis donated to the Catholic Clinic in the town in support of its expansion works.

The Manager of the Bank, Mr. Kwadwo Antwi-Okyere, said the bank was intensifying a savings mobilisation drive at its agencies where the performance fell below expectation to enable it to have long term funds to expand its activities.

He said the bank declared a dividend of five cedis per share, adding that after a share revaluation exercise, new values have been established as 500 cedis per share from the previous one cedi per share. The Majority Leader in Parliament, Mr Felix Owusu Agyapong who is also the MP for Akim Swedru, who was the special guest of honour, urged the directors of the bank to take advantage of the several Presidential Initiatives to set up, at least two factories in the area.

The Bank later donated a wheelchair to Ms. Grace Obeng, a 42-year-old physically challenged person at Akim Swedru.