Juansa (Ash), Oct. 7, GNA - Rural banks have been urged to appoint competent and experience directors to ensure effective and prudent management in the face of the increasing competition in the banking industry.
Mr Emmanuel Kwapong, Managing Director of the ARB Apex Bank made the call in a speech read for him at the 19th Annual General Meeting of the Asante Akim Rural Bank at Juansa on Friday.
He further entreated the boards and management of rural banks to periodically update themselves with modern trends in banking to meet unanticipated challenges.
He observed that, some directors of rural banks lacked the needed experience to manage them, adding that, the Bank of Ghana's policy on directorship of banks, required the appointment of non-executive and executive individuals, who passed the fit and proper test to run the affairs of the banks.
Mr Kwapong, therefore, stressed that, the board of any bank must comprise of people of integrity, who had varied background and experience that they could brought to bear on the operations of the board.
Mr Francis Opuni Sekyere, the board chairman of the bank in an address, said the total assets of the bank increased from 25.8 billion cedis in 2004 to 31.4 billion cedis in 2005, representing an increase of 22 per cent.
He said the total deposit also saw a 23 per cent increase from 17.9 billion cedis in 2004 to 22.1 billion cedis in 2005, with investment in government treasury bills increasing from 10.14 billion cedis to 13.14 billion cedis within the same period.
Mr Sekyere, however, expressed grave concern about the bank's profit before tax, which slightly went down from 993.2 million cedis in 2004 to 984.7 million cedis in 2005, attributing it to the downward trend of treasury bills, as well as some expenditure incurred in the relocation of the Konongo agency.
Mr Kwadwo Baah Wiredu, Minister of Finance and Economic Planning, in an address, said government recognised efforts of rural banks in assisting people in rural communities in which they operate and urged the banks to inculcate in the people the habit of saving and accessing credits. He said rural banks had the responsibility to make their clients appreciate how to save as well as manage small amounts to grow. The Minister, however, expressed dissatisfaction about most financial institutions' inability to develop financial services that were tailored to meet the needs of the poor and petty traders, who dealt with small amount. 7 Oct. 06
