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BoG
won’t approve RCBs loans above 2,000 GH cedis
Awutu Bawjiase (C/R), Aug 1, Ghanadot/GNA - Bank of Ghana (BoG)
will no longer approve loans above 2,000 Ghana cedis that
Rural and Community Banks (RCBs) give to their customers,
effective July this year.
Mr Duke Osam-Doudu, Deputy Managing Director of the
Association of Rural Bank (ARB) Apex Bank, who announced
this at the 18th Annual General Meeting (AGM) of the
Bawjiase Area Rural Bank at Awutu Bawjiase in the Central
Region, said the decision was to ensure speedy and prompt
payment of loans.
He said RCBs were therefore obliged to submit to the BoG,
returns on loans they would be granting on a monthly basis
to check financial mismanagement of the bank.
Mr Osam-Duodu said as result the ARB Apex Bank would
institute policy manual, which would guide RCBs in their
loan delivery system.
The Deputy Managing Director noted that corporate ownership
in the RCBs had been restricted to 50 percent shares, adding
that financial institution were not allowed to hold shares
in RCBs as banking law required.
He said the BoG had also directed that RCBs provide the list
of their major shareholders at AGMs.
Mr Osam-Duodu said the new minimum capital requirements for
RCB had been pegged at 150,000 Ghana cedis and added that
the existing banks were required to grow with their stated
capital.
He said those with stated capital below 150,000 Ghana cedis
would not be allowed to pay dividends to shareholders, open
new branches and agencies, according to BOG directives
The Deputy Managing Director said the Ghana Inter-Bank
Payment System (GIPS) would soon register ARB Apex Bank on
the e-Zwich system to link with all RCBs’ network. RCBs, he
said, would serve as teller agents, depending on their
financial strength.
In line to that, Mr Osam-Duodu said Apex Bank was liaising
with GIPS to draw up an outreach programme to educate staff,
management and directors of RCB, August this month.
He commended the Bawjiase Bank for excellent performance and
urged shareholders to support its drive of becoming one of
the strongest banks in the rural banking sector.
Mr Emmanuel Osei, Chairman of the Board of Directors of the
Bawjiase Bank said its profit before tax amounted to 247,359
Ghana cedis, representing a 21 percent increase, as against
204,942 Ghana cedis in 2007.
Mr Osei said the bank had set aside a total of 4,555 Ghana
cedis as a scholarship fund to support brilliant but needy
students Senior High Schools and Universities in the area.
Mr Kweku Aquaah, Central Regional President of the
Association of Rural Banks, advised shareholders to buy more
shares to enable the bank to meet the current capital
requirement.
He suggested a merger of banks to those institutions which
stated capitals were below 150,000 Ghana cedis to promote
their effective management and avoid liquidation.
GNA
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