Director urges banks to institute credit management programmes

Fomena-Adansi, Sept 9, GNA - Rural and Community Banks

(RCBs) have been urged to institute credit management

programmes so as to expand their loans and advances portfolio

and remain competitive.

Mr Eric Osei-Bonsu, Managing Director of ARB Apex Bank

who made the call in a speech read on his behalf by Mr Enoch R.

Arkaifie, Head of Credit Unit of Apex Bank at the 20th Annual

General Meeting (AGM) of Adansi Rural Bank at Fomena,

observed that 93with declining interest on government papers,

RCBs have no option but to book good loans to continue to be in

business."

He praised the Adansi Rural Bank for its overall impressive

performance but noted that the modest increase in the bank's

advances portfolio would require expansion through the

pursuance of aggressive but prudent credit operations.

Mr Osei-Bonsu appealed to customers and shareholders who

are in loan arrears to pay back to enable others to enjoy and to

move the bank to higher heights.

"The banking industry is currently characterized by growing

competition and therefore your bank will have to step up its

performance in all aspects of its operations so as to maintain and

sustain a strong standing in the industry," he said.

The Managing Director pointed out that of late, RCBs have

been witnessing reported cases of fraudulent activities and

therefore urged the bank to strengthen its internal control systems

to forestall the occurrence of any such act.

Alhaji Abdul Lateef Majduob, Adansi North District Chief

Executive, commended the bank for its numerous social

intervention programmes to address the needs of the people.

He said the government was committed to ensuring micro-

economic stability through prudent monetary and fiscal policy

measures and called for collaboration from the financial

institutions.

"The collaboration and co-operation of our financial

institutions in driving our economy is even more crucial now than

before and it is therefore our hope that you would respond

favourably to the current stable micro economic environment and

reduce your interest rates," the DCE said.

The Member of Parliament for Fomena, Nana Abu Bonsrah,

said the bank could continue to respond to its social

responsibilities only when it remained profitable and, therefore,

urged loan defaulters to pay back their loans.

Mr Ahmad Kwame Boakye, Chairman of the Board of

Directors, recommended a dividend payment of GH¢0.019 per

share with a total proposed dividend of GH¢53,810.22 as against

GH¢46,656.00 paid in 2008.