Ga Rural Banks hold Annual General meeting

Kordiabe (Greater Accra), 25 Jan. '99, --

The Greater Accra Regional Chapter of the Association of Rural Banks (ARB), has been called upon to be more aggressive in deposit mobilisation to ensure their sustainability. Mr K. S. Osei-Bonsu, a banking supervisor at the Bank of Ghana (BOG) who made the call stressed that an improvement in deposit mobilisation would increase national savings for investment.

He noted that the Ghanaian economy "has remained a cash-based economy" with the bulk of the money supply outside the banking system. The deposit mobilisation, if well operated, will be an effective vehicle to promote savings in the banks. Mr Osei-Bonsu was speaking at the association's fourth annual general meeting held on Saturdy at Kordiabe, in the Greater Accra region. The Greater Accra Chapter is made up of the Ga, Abokobi, Ada, Shai and Dangme rural banks.

Rural banking system was introduced into the country two decades ago to help meet the challenges of rural development, through the mobilisation of savings in the rural areas. The system also provides credit facilities to finance rural/agricultural activities, as well as to help improve the economic and social well being of the rural people.

Mr Stephen Ameyaw, head of rural finance inspection department of BOG acknowledged successes chalked under the rural bank scheme, but emphasised that "there is more to be done in the banks' operation in order to enhance their role in the area of poverty alleviation".

For the achievement of the desired objective, Mr Ameyaw said rural/community banks should pay attention to human resources development, develop new marketing strategy and also provide their customers with quality savings instruments appropriate for local demand. He mentioned that, the government in its 1998 budget, had reduced the corporate tax level of rural banks from 35 per cent to eight per cent.

Mr Ameyaw explained that this was meant to help improve the cash flow positions of the banks, which would enable them expand their levels of credit to customers.