Bank of Ghana to eliminate delays in cheque clearing soon

Apam, May 27, GNA - The Bank of Ghana would in July introduce a new cheque clearing system, dubbed the 'cheque code-line clearing' to facilitate and reduce delays in the cheque clearing process. The electronic-based system, which would replace the manual system of clearing cheques, is an innovation of the Ghana Inter-Bank Payments Solutions System (GHIPSS), a subsidiary of the Bank of Ghana. Mr Richard Mettle Addo, Head of Research and Marketing Department of the ARB Apex Bank, announced this at the 28th annual general meeting of the Gomoa Rural Bank, at Apam.

Mr. Addo said the cheque code-line clearing and the e-zwich money transfer products were part of the reforms being made by the Central Bank to make Ghana a cashless economy. This means people would do transactions faster, easier and without fiscal cash.

He appealed to rural and community banks to alter their operations to keep in tune with the changing technological and electronic requirements, saying training would soon start on the new cheque system. Mr. Addo commended the management and the board of directors of the Gomoa Rural Bank for increasing its capital adequacy ration to 55.79 per cent placing second position among 126 rural-community banks (RCB) in the country.

Mr. Kodwo Konadu Asiamah, Executive Director, Association of Rural Banks, urged directors of RCBs to initiate programmes to counter the global credit crunch. He appealed to metropolitan, municipal and district assemblies to channel their shares of the district assembly common fund through the RCBs to help them to generate some revenue to support development projects in their areas.

Mr. Andrew B. Simpson, chairman of the Board of Directors of the Bank, in a report said the Bank made GHc52,247 profit before tax in 2008 as against GHc32,748 representing 59 per cent. Deposits increased from GHc759,485 in 2007 to GHc1,170,504 representing 54 per cent. Investment rose from GHc786,984 in 2007 to GHc998,305 in the year under review representing 27 per cent. Mr. Simpson expressed concern about the failure of customers to repay loans, declaring GHc67,307 as outstanding loan in 2008 as against GHc94,283 in 2007.

Mrs. Rose Newman, National President of the Association of Rural Banks, appealed to shareholders to increase their shares to enable the bank to raise its capital adequacy. She, however, commended the bank for raising it share capital from GHc51,000 in 2007 to GHc154,000 in 2008.