Business News of Wed, 3 Dec 19970

Rural Banks Urged To Give Loans To Communities

Assin Manso (Central Region) 2 Dec. '97

Mr.. Stephen Ameyaw, head of rural finance inspection department of Bank of Ghana has urged rural banks to give credit facilities to people in their catchment areas to alleviate their problems. Mr.. Ameyaw was speaking at the seventh annual general meeting of Assinman rural bank at Assin Manso at the weekend. He called on directors of rural Banks to ensure sound financial management in order to meet the aspirations of shareholders.

Mr.. Ameyaw said as a financial intermediary, rural banks must effectively play their roles in assisting productive activities in their catchment areas. "They must ensure that they direct their credits to sectors that will help alleviate the plight of people in their catchment areas while at the same time ensuring prompt payment and adequate return to their shareholders".

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He called for adequate training for their staff to enhance effective performance saying "The Bank Of Ghana will continue to assist the association of rural banks in its training programmes".

The Chairman of the Board of Directors, Mr.. Kofi Mintah announced that the Assinman rural bank purchased Akuafo cheques totaling 199.06 million cedis in 1996 as compared to 188.4 million cedis in 1995. Mr.. Mintah disclosed that the bank made a net profit of 5.8 million cedis in 1996 as against 4.3 million cedis in 1995 fiscal year.

He said the bank granted loans and overdrafts to workers during the year under review amounting to 50.2 million cedis of which 100 percent recovery has been made. Mr.. Kwaku Alhasan Dadzi, MP for Assin South called on shareholders of the bank to buy more shares to assist the bank increase its capital base. He supported a suggestion by directors of rural banks in the area that the Assin District Assembly should send its share of the common fund to the Assinman rural bank. gri

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