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09.10.2005 Business & Finance

APEX bank suggests criteria for directorship of rural banks

By GNA
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Nsuta, (Ash), Oct. 9, GNA - The ARB APEX Bank has suggested to Rural and Community banks to look out for Directors with the requisite education and experience who would contribute to the effective management of the banks when constituting their Boards. In this regard therefore, the APEX Bank said the prospective Director must have been a shareholder of the bank for a period of not less than five years to enable him or her to understand and appreciate the dynamics of the rural bank.

These were contained in a speech read on behalf of Mr. Emmanuel Kwapong, Managing Director of the ARB APEX Bank at the fourth annual general meeting of the Nsutaman Rural Bank at Nsuta in the Sekyere-West District of Ashanti on Friday.

Mr. Kwapong said the prospective director must possess a good educational background, at least secondary school level and in addition have a qualification or experience in areas of agriculture, banking, accountancy, economics, management, law, finance, mathematics or any other relevant disciplines.

The person, he said, must be highly public spirited, must be noted for his or her support for development programmes of the catchment area of the bank and must have a significant paid up share capital of the bank. Mr. Kwapong said in-spite of the fact that the performance of most rural and community banks has been very encouraging, they still have a lot more to do by way of organizational restructuring and effective credit administration so as to meet the challenges of the increasingly complex and sophisticated business environment.

Dr. James Nti, Chairman of the Board of Directors of the Bank, in his report said the bank made a net operating profit of 315.265 million cedis, an increase of 26 percent over the previous year's profit of 250.474 million cedis.

As a result of this, he said the shareholders fund now stood at 1.072 billion cedis as compared to 723.534 million cedis in 2003 thus showing an increase of 48 per cent. Dr. Nti said income rose from 929.243 million cedis in 2003 to 982.653 million cedis, explaining that a greater proportion of the amount, 710.599 million cedis emanated from investment in government treasury bills.

Mr. Kwame Osei Prempeh, Member of Parliament (MP) for Nsuta-Kwamang, asked the bank to assist in establishing cottage industries in the area. Oct. 09 05

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