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30.11.2003 Business & Finance

Rural Banks put C406.7 billion into Govt Securities

By GNA
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Antoakrom (Ash), Nov. 30, GNA - Rural Banks are showing tremendous successes in mopping up excess liquidity in the economy with their total investment in Government Securities standing at 406.7 billion cedis as at the end of September, this year.

This formed 7.04 percent of the total Banking Industry Investments.

Mr Joseph B. Clottey, Head of Banking Supervision Department of the Bank of Ghana (BOG) announced this at the 20th Anniversary celebration and official inauguration of a new 950 million-cedi Head Office building of the Amansie West Rural Bank at Antoakrom during the weekend.

He said it was refreshing that the total assets of rural banks increased from 379.03 billion cedis in 2000 to 1,070.61 billion cedis by the end of September, 2003.

Within the same period, their deposits mobilisation rose to 791.62 billion cedis, representing a percentage increase of 219.62 percent.

He told the management of the banks not to be complacent but continue to adopt good credit management practices to protect the interest of their banks.

"We believe that with the adoption of sound banking practices and dedication on the part of staff and management, coupled with the support from the Central Bank, the ultimate aspirations of the rural banking concept would be achieved".

He noted that the singular effort of extending banking services to the remotest corners of the country has contributed immensely in making institutional credit available to micro-scale economic operatives in rural communities and thereby helped to raise their living conditions.

Mr Stephen Kwabena Buor-Karikari, Member of Parliament (MP) for Amansie-West, asked the people to take advantage of the facilities offered by the bank to set up small-scale industries.

He lauded the bank for living up to its social responsibilities and called on the management to open agencies in other parts of the district.

Mr Benjamin Kwakye-Adeefe, the District Chief Executive, asked loan beneficiaries to pay back on time to enable the funds to be recycled to benefit others.

Captain Moses Kyeremateng (rtd), Chairman of the Board of Directors, said the bank's financial position continues to be favourable, making steady progress in deposits mobilisation, profit, investment and Clearing of the Special Akuafo cheques.

It for example, made a profit of 817 billion cedis in 2002 as against 597.4 cedis, the previous year, while deposits shot up from 5.3 billion cedis to 8.7 billion cedis with the purchase of the Akuafo Cheque moving up to 15 billion cedis from 2.5 billion cedis during the same period.

Captain Kyeremateng expressed disgust at the continued use of cash instead of the Akuafo Cheque by some recalcitrant Buying Companies and appealed to the government to ensure that a law was enacted by Parliament to back the cheque system so that the offending Companies would be punished.

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