Mponua Rural Bank grants GHc1,120 loans to customers

Amuana Praso (E/R), Dec. 1, GNA - The Mponua Rural Bank at Amuana Praso in the Birim North District, granted loans and over drafts totalling GHc1,120.690.00 to its customers last year, as against the GHc816,075.00 granted in 2007.

The credit facility went into ventures such as agriculture, transport, commerce and micro- finance. The bank mobilised GHc2,067.54 deposit in 2008 as against GHc1,808 in 2007, representing an increase of 14 per cent. Total assets of the bank increased from GHc2,084.401 in 2007 to GHc2,299.651 in 2008.

The Chairman of the Board of Directors of the bank, Mr George Osei- Ameyaw, disclosed this at the 15th Annual General Meeting of the financial entity at Amuana Praso at the weekend. He announced that the share capital of the bank stood at GHc56,296.33, which he said, fell below the Bank of Ghana requirement of GHc150,000 for rural banks to be in operation. He advised all shareholders to increase their shares for the bank to increase its capital base.

Mr Osei-Ameyaw disclosed that some of the bank employees who were involved in financial malpractices amounting to GHc25,000 in 2005 have been arrested and standing trial at the Nkawkaw and Mpraeso circuit courts. Mr Eric Osei-Bonsu, Managing Director of ARB Apex bank, in an address read on his behalf, urged Rural and Community Banks (RCBs) to form strategic alliance to enable them stay in competitive business. He said the banking industry was under going rapid technological transformation in the form of Electronic Banking such as E-Zwich, Electronic Financial Analyses Surveillance System and Check Code-Line Clearing, design to improve operational efficiency.

Mr Osei-Ameyaw urged the RCBs to strengthen their internal control to ensure that their operations are carried out in an orderly manner consistent with best practices in the banking industry.