BoG to be ruthless with errant financial institutions

The Bank of Ghana (BoG) has vowed strict enforcement of the banking regulations to protect the savings and investment of customers.

Mr. Michael Anyamesem, its Ashanti Regional Manager, said it would go to every length to cleanse the banking sector of errant financial institutions, operating outside the law.

He warned that those without authorization or had refused to adhere to their licensing requirement would be stopped from doing business

He was addressing the 28th annual general meeting of the shareholders of the Asante Akyem Rural Bank at Juansa.

Mr. Anyamesem said the central bank would do everything to live up to its responsibility of ensuring effective financial intermediation and prevent fraudulent investment operation.

He hailed the rural bank for its strong performance, citing significant rise in its deposits to GH¢ 21.49 million, as of the end of December, last year, representing an increase of 19 per cent over the previous year’s total of GH¢ 17.99 million.

At the same time, the bank’s total assets shot up to GH¢ 29.24 million from GH¢ 25.54.

He again noted with satisfaction the support it was giving to farmers, traders, artisans and other businesses and asked that this was sustained to help boost the economies of the rural communities and make things better for the people.

Mr. Francis Opuni Sekyere, the Board Chairman, told the shareholders that the bank made a profit before tax of GH¢ 1.139 million on its operations, last year.

This compared with the year 2013 figure of GH¢ 1.252 million, represented a drop of nine per cent and he said the unfavourable business conditions, exacerbated by the power crisis were to blame.

He spoke of the urgent need to increase its share capital to at least GH¢ 2 million, to enable the bank to undertake major investments.

The bank announced the payment of GH¢ 170,000 as dividend to shareholders.