Rural banks urged to list share on Stock Exchange

Abetifi (E/R), Sept 24, GNA - A shareholder of Odwen-Anoma Rural Bank on Wednesday called on the Bank of Ghana and the ARB Apex Bank to assist rural banks to list their shares on the stock exchange to enable shareholders to sell their shares.

Mr Kwame Osei-Safo also appealed to the central bank not to give rural banks ceiling share capital to enable them pay adequate dividends to their shareholders.

Mr Osei-Safo made the call at the 7th annual general meeting of the Bank at Abetifi in the Kwahu South District.

He said most shareholders find it difficult to sell their shares since the shares of rural banks are not listed on the Stock Exchange. Mr Osei-Safo said due to a recent decision of the Bank of Ghana for all rural banks to raise their share capital to 500 million cedis most of the rural banks converted dividends, which should have been paid to its shareholders, into bonus share to enable them raise the 500 million cedis share capital.

He said the system is demoralising the shareholders and that he had not received any dividends from the bank after investing over 500,000 cedis as share for the past eight years.