Rural and Community Banks (RCBs) have been urged to institute credit management programmes so as to expand their loans and advances portfolio and remain competitive.
Mr Eric Osei-Bonsu, Managing Director of ARB Apex Bank who made the call in a speech read on his behalf by Mr Enoch R. Arkaifie, Head of Credit Unit of Apex Bank at the 20th Annual
General Meeting (AGM) of Adansi Rural Bank at Fomena, observed that �with declining interest on government papers, RCBs have no option but to book good loans to continue to be in business.�
He praised the Adansi Rural Bank for its overall impressive performance but noted that the modest increase in the bank�s advances portfolio would require expansion through the pursuance of aggressive but prudent credit operations.
Mr Osei-Bonsu appealed to customers and shareholders who are in loan arrears to pay back to enable others to enjoy and to move the bank to higher heights.
�The banking industry is currently characterized by growing competition and therefore your bank will have to step up its
performance in all aspects of its operations so as to maintain and sustain a strong standing in the industry,� he said.
The Managing Director pointed out that of late, RCBs have been witnessing reported cases of fraudulent activities and therefore urged the bank to strengthen its internal control systems
to forestall the occurrence of any such act.
Alhaji Abdul Lateef Majduob, Adansi North District Chief Executive, commended the bank for its numerous social intervention programmes to address the needs of the people.
He said the government was committed to ensuring micro-economic stability through prudent monetary and fiscal policy measures and called for collaboration from the financial
institutions.
�The collaboration and co-operation of our financial institutions in driving our economy is even more crucial now than before and it is therefore our hope that you would respond
favourably to the current stable micro economic environment and reduce your interest rates,� the DCE said.
The Member of Parliament for Fomena, Nana Abu Bonsrah, said the bank could continue to respond to its social responsibilities only when it remained profitable and, therefore, urged loan defaulters to pay back their loans.
Mr Ahmad Kwame Boakye, Chairman of the Board of Directors, recommended a dividend payment of GH�0.019 per share with a total proposed dividend of GH�53,810.22 as against
GH�46,656.00 paid in 2008.