Twenty-three rural banks closed down for non-performance

Bogoso (W/R), Sept 28, GNA- Mr Emmanuel Asiedu-Mante, Director, Banking Supervision Department of Bank of Ghana, has said that out of 133 rural banks that were established at the inception of the rural banking concept, 23 have been closed down due to poor performance.

Mr Asiedu-Mante, who was speaking at the 13th annual general meeting of the shareholders of Bogoso Area Rural Bank Limited (BARB) at Bogoso, in the Western Region, at the weekend, commended BARB for its impressive performance.

He said it was unprecedented for BARB to have made a net profit of 33.9 million cedis as at December 31, 1996 and then the profit rising up to 268.8 million cedis as at December 31, 1998 - within a period of three years.

"The Bank's loan recovery rate, which stood at 97.4 per cent as at December 31, 1998, is excellent". "Even the bigger banks have not achieved that rate of recovery" he said while commenting on the report presented by Mr George Kwasi Acheampong, Chairman of the Board of Directors of the Bank.

Mr Asiedu-Mante advised rural bank customers to refrain from writing anonymous letters. This, he said seeks to tarnish the image of the bank and its officials, adding that, "problems relating to the bank's operations must be solved amicably".

He also commended BARB for providing social services to the tune of 5.8 million cedis in its catchment area during the period under review, saying, "this is the manifestation of rural banking spirit".

These include rehabilitation of Bogoso and Ateiku Methodist junior secondary schools (JSS) and financial contributions towards Huni Valley Senior Secondary School Computer Project and Amuanda streetlights programme.

Mr Acheampong said the bank granted more than 1.5 billion cedis as loans and overdrafts to its customers in sectors including agriculture, trading, transport and cottage industry.

Mr Acheampong explained that the bank's shareholding stood at 45.2 million cedis representing two per cent of the total deposit mobilised. He, therefore, appealed to shareholders to buy more shares to improve upon the bank's capital base.

He added that the bank has set aside five million cedis for a scholarship scheme for five brilliant and needy students within the bank's catchment area at the senior secondary school level.

BARB started operation in 1983 and has six agencies at Prestea, Dompim, Tarkwa, Aboso, Ateiku and Darmang/Huni Valley and over 2,000 shareholders.