Distressed rural banks will no longer fold up

Kumasi, Dec 12, GNA- Distressed rural banks will no longer be allowed to fold up following the establishment of the Apex Bank, Mr Eric Osei-Bonsu, Executive Director of the Association of Rural Banks (ARB), said on Friday.

He said money would be moved from operating rural banks to support distressed banks.

Addressing the inauguration of the National Consultative Council of Rural Banks of the Industrial and Commercial Union (ICU) Mr Osei-Bonsu, said this move was borne out of the realisation that rural banks served as catalyst for poverty alleviation.

The rural banking scheme, he said, is a novelty in Africa and had been acclaimed by some African countries such as the Gambia, Nigeria, Sierra Leone, Uganda and Kenya and personnel from these countries have been sent to Ghana to study the scheme.

The scheme has also enjoyed international support from DANIDA, World Bank, International Fund for Agricultural Development (IFAD) and the African Development Bank (ADB).

Mr Osei-Bonsu said his research had shown that the performance of rural banks had a direct correlation with the calibre of the Board of Directors.

The ARB had, therefore, started training directors of rural banks.

On the HIV/AIDS, Mr Osei-Bonsu said the ARB would soon submit a proposal to the Ghana AIDS Commission (GAC) outlining the roles rural banks could and should play in fighting the menace.

Mr Osei-Bonsu invited the ICU and the national consultative council to join the ARB in fashioning out a programme to assist in educating their shareholders and customers about the dangers posed by the disease.

Mr Gilbert A. Awinongya, Deputy General Secretary of ICU, called on the Bank of Ghana, the Apex Bank and the ARB to take immediate steps to set up a training centre for the training of both senior and junior employees of all rural banks.

He also asked the ARB to ensure that the banks operate the Collective Bargaining Agreement (CBA), assist the staff in self-development training and establish regular refresher courses for board of directors of rural banks.

Mr Awinongya called on the Ministry of Local Government and Rural Development to enact byelaws to compel Municipal and District Assemblies to do their financial transactions with the rural banks operating in their area for accelerated economic growth of the private sector.

Mr J.Y. Andoh, the ICU Officer in-charge of Rural Banks, noted that one of the major concerns of employees of rural banks had been how to have a proper platform to channel their concerns.

He said with the establishment of the national consultative council, this concern had been addressed and called for co-operation from both the executive and the employees.

Mr Isaac Kwame Owusu-Achaw, National Chairman of the National Consultative Council, expressed gratitude to the ICU for making it possible to form and inaugurate the council and called for co-operation from all.