Asokore (Ashanti Region), 14 Oct, '98 Rural banks have been told to intensify efforts at mobilising rural savings through the development of effective linkages with the informal sector of the economy.
Mr Eric Osei-Bonsu, a director of the Association of Rural Banks (ARB), said ''this is necessary if they are to succeed in making the required impact on rural development and broaden rural financial intermediation.
He was addressing the 10th annual general meeting of shareholders of the Asokore Rural Bank at Asokore in the Sekyere East district of Ashanti.
The association is discussing with the United Nations Development Programme (UNDP) ways of securing funding to support the rural banks' lending obligations.
Mr Osei-Bonsu cautioned them against flouting rules and regulations set out by the Bank of Ghana (BOG). Colonel P.K. Agyekum (Rtd), chairman of the Board of Directors, said the present board appointed in November 1994 had managed to change the fortunes of the bank which experienced five years of losses totalling 64.7 million cedis.
He said the bank made a profit of 17 million cedis last year as against two million cedis in 1996 which marked the period of break from operational losses.
He observed that there has been tremendous growth in the bank's investments, particularly in treasury bills, saying from a modest 90.3 million cedis in 1995, it has increased to 420.1 million cedis in October, this year. Col Agyekum said the bank earned 3.8 million cedis from Akuafo cheques in 1996 and 2.6 million cedis in 1997. The bank has so far mobilised 501.7 million cedis in deposits with its share capital standing at 10.3 million cedis.
Col Agyekum was unhappy with the share capital base of the bank and called on the shareholders to increase their shareholdings. GRi
