Rural banks resist merger-call

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• Koo 12 years ago

  Developed countries are developed because the government support the banking industry. Rather than giving huge monies to bogus non-existing companies to sustain corruption, those monies can support the financial organisations ...
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  Developed countries are developed because the government support the banking industry. Rather than giving huge monies to bogus non-existing companies to sustain corruption, those monies can support the financial organisations to wriggle down the positive effects on small business. In a country where interest rates are staggeringly high it is a mirage to see government to come out saying 'we support small businesses and believe the private sector is the engine of growth' Well not in Ghana. If we are serious as a nation, and our leaders are serious about helping the ordinary person, credits must be easily attainable through banks. Look at the entire non-bank sector (Rural Banks and Microfiance companies). they are simply dying cos they are on their own....no help from anywhere. Yet we pride ourselves in every commodity, Oil, Gold, Timber, etc. May God help us!

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• Paa Joe 12 years ago

  There is a simple solution to this problem. Allow the acquired banks to retain their respective community names. Create a financial holding company to oversee both operations.

  There is a simple solution to this problem. Allow the acquired banks to retain their respective community names. Create a financial holding company to oversee both operations.

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• Dr Robert K Glah 12 years ago

  Merger clashed with the principles behind the founding of the Rural Banks. Merger is not everything.
  
  Let the local people have their say and bank for gradual development.
  
  Give the Rural Banks local freedom and exemption ...
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  Merger clashed with the principles behind the founding of the Rural Banks. Merger is not everything.
  
  Let the local people have their say and bank for gradual development.
  
  Give the Rural Banks local freedom and exemptions from main stream bank obligations (Small Bank Status)

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• Jakalia 10 years ago

  Rural banks were indeed create to serve a special purpose, thus providing financial assistance to the rural folks within specific geographical locations. But this concept has out lived its usefulness if you look at the curren ...
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  Rural banks were indeed create to serve a special purpose, thus providing financial assistance to the rural folks within specific geographical locations. But this concept has out lived its usefulness if you look at the current trends and development in the banking sector in Ghana. Many RCBs are grappling with in adequate capital because of their relatively small capital base. Potentially good businesses they could have financed are lost to competitors because of regulatory constraints on leverage issues. on top of that many tier 3 micro finance companies are cropping up all over the place with relatively higher capitals and aggressively competing with RCBs. If RCBs do not relook at the possibility of recapitalizing especially through mergers the purpose for which they were create would still be defeated since many would soon collapse. A merger of RCBs would make them the most wide spread single business entity. Efficiency would come in from various redundancy exercises on operations and branches. But the average share holder value would increase from efficiencies introduced from asset and personnel consolidation. May be the set back to mergers for RCBs may be out of selfish interest of some stake holders. RCBs, it is your call

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