Don't use global credit crunch to deny loan facilities to customers- Banks told

Agona Swedru, June 29, GNA- Rural and Community Banks have been urged not to use the " Global Credit Crunch" as an excuse to deny hardworking rural dwellers loans and overdrafts that would help improve their trade and businesses.

Mrs Ama Benyiwa Doe, Central Regional Minister told financial institutions during the first anniversary celebration of the Central Regional Rural Bank Ladies Association (CERBRALS) on Saturday at Agona Swedru.

She has therefore urged Boards of Directors and Managements of the banks to adopt efficient and effective strategies that will help them provide enough credit facility to finance and expand customers' businesses.

The celebration was under the theme; "The Global Credit Crunch, its impact on rural banking in Ghana".

The Regional Minister stressed that the global economic meltdown had brought negative effects not only on the business sector alone, but also untold hardship on the entire populace. She lamented about the fast rate at which rural banks were moving from rural areas to urban centers, and urged them to take a critical look at the situation, to enable them stick to the aims and objectives of introducing the rural banking sector in the country. Mrs Benyiwa Doe cautioned rural and community banks to be cautious about the nefarious activities of internet fraudsters, popularly known as "Sakawa", adding that intelligence reports indicate that the fraudsters were finding the rural banks easy conduits for criminal operations. The Regional Minister said it was imperative for the staffs to be security conscious, and to report any suspicious bank account to their superior officers. She therefore entreated the ladies in the rural banking sector to endeavour to upgrade their educational backgrounds to enable them face the modern financial situation.

The Regional Minister appealed to the members to desist from all attempts that would cause the demise of the association, urging them to avoid arrogance, back biting and character assassination to promote their welfare.

Mrs Prudent Aba Marfo, Central Regional President of the Association appealed to the metropolitan, municipal and district assemblies to channel their share of the Common Fund through Rural and Community banks to improve their financial operations. She noted that the association has outlined policies and programmes that would enhance the welfare of the members and banks in the Central Region.

The President stated that the association would form a banking think-tank that would provide adequate room for the promotion of the banking industry.