Business News of 2014-07-07

Gov’t urged to channel Common Funds through Rural Banks

Rural and Community Banks have renewed their appeal to the government to reconsider its decision to channel the District Assemblies Common Fund through them to improve financial positions in the rural and urban areas.

According to the banks, the boards, managements and staffs are capable enough to manage and disburse the funds as commercial and other big banks are currently performing in all sectors of the economy. Major (retired) Ben Donkoh, Chairman of the Board of Directors of the Agona Rural Bank, made the appeal at the 28th Annual General Meeting (AGM) of the bank at Kwanyako in the Agona East District of the Central Region.

He said the rural banks are playing vital roles in the financial management of the country as others big banks are doing in the financial sector. Maj Donkoh stated that all rural banks have been networked, and can therefore perform financial transactions in the areas of transfer of money and other businesses without any difficulties.

According to the Board Chairman, rural and community banks are performing better in the micro-finance sector in a bid to improve small and medium enterprises, adding that may women in the rural areas have also expanded their businesses as a result of the micro-finance programme.

He said the favourable response that would come from the government would go a long way to inspire and motivate the rural and community banks to travel extra miles in their banking operations.

The Chairman, therefore, appealed to the ARB APEX Bank to intercede on behalf of the banks to ensure that the funds are channelled through them for the benefit of the rural folks. Maj Donkoh said if the government grants the opportunity, it will go a long way to resuscitate the rural financial sector, adding that it is important for the government to create an enabling environment for the banks to operate smoothly.

He said rural and community banks are offering financial support to the District and Municipal Assemblies to enhance their operations, adding that apart from that the banks also render social and corporate responsibilities to the communities in the catchment areas of the banks.

Source: GNA
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