Fomena, (Ash), Oct. 6, Ghanadot/GNA – All rural
and community banks operating with a capital
below GH¢150,000 would not be allowed to pay
dividends to shareholders and also open new
branches or agencies until they attained that
capitalization.
These form part of changes in the regulation of
rural and community banks, introduced by the
Bank of Ghana (BoG) in July this year.
Mr Emmanuel Yaw Sarpong, Head of Banking
Operations Department of ARB Apex Bank, who
announced this at the 18th annual general
meeting of Adansi Rural Bank at Fomena in the
Adansi North District said, “the new minimum
capital requirement for rural banks is now set
at GH¢150,000 and existing banks are therefore,
required to grow their stated capital to that
level”.
He also announced that, under the BoG new
regulation, cooperative ownership of rural and
community banks had been restricted to 50 per
cent of the total share with that of individual
and family ownership fixed at 30 and 40 per cent
respectively.
Mr Sarpong said no financial institution was
permitted to hold shares in rural banks, but
added that shares of rural banks should always
be made available for the public to purchase
them.
The ARB Apex Bank Head of Banking Operations,
said it was time rural banks embarked on
organizational restructuring, effective credit
administration, cost control and reduction, so
as to meet the challenges of the changing
competitive business environment.
Commending the Adansi Rural Bank for a good job
done, Mr Sarpong appealed to the directors,
management and staff to work harder as a team to
achieve their set targets.
Mr Francis Dorpenyo, Adansi South District Chief
Executive, noted that, the government’s economic
policies had facilitated improvements in most
rural banks in the country.
He commended the Adansi rural bank for making
people have confidence in rural and community
banking.
Mr Dorpenyo appealed to the stakeholders not to
clamour for the payment of higher dividend since
the bank was engaged in development projects
including the building of a head office at
Fomena.
The Executive Director of Association of Rural
Banks, Ghana, Mr K.K Asiama, appealed to the
shareholders to open accounts with the bank and
also purchase more shares to help the bank to
improve its capital and deposit base.
GNA
