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18.05.2006 Business & Finance

Rural banks must be effective—MPs

By myjoyonline

Members of Parliament have asked rural banks to adopt sound banking practices in order to make their services attractive to local people.

The MPs say as banks formed to mobilize funds and help rural communities in their financial activities, rural banks have a duty to employ qualified personnel who understand the needs of the communities they serve.

The MPs, contributing to a statement by the MP for Akropong, William Ofori Boafo, said district assemblies should see the banks as vehicles for development and as such should channel their poverty alleviation funds through them.

Mr. Boafo told Parliament that one of the achievements of rural banks was the creation of banking habits among the people at the grassroots.

He said between 2001 and 2005, the paid up capital of rural banks had increased to 43.52 billion cedis from the previous 4.29 billion cedis in 2000.

MPs who spoke on the matter emphasized the relevance of the banks but urged them not to move out of rural communities as some are doing now.