He said in recent years there has been the proliferation of dubious micro-finance companies in the country who promise the payment of unreasonable, unbelievable and unrealistic huge interest rates to lure customers

But many of their initiatives ended up as scam because such companies unexpectedly collapsed without paying back the investments of clients, the Dormaahene said.

Osaagyefo Agyemang Badu said this during a mini-durbar organised by the Dormaa Ahenkro branch of the Agricultural Development Bank (ADB) to mark the official inauguration of its new banking premises on Friday at Dormaa-Ahenkro.

He cited the huge financial loss suffered by most residents in Brong-Ahafo which drastically affected the growth of the region’s economy in the last two years when dubious micro-financial companies like the DKM, God Is Love and Little Drops duped clients of millions of Ghanaian Cedis.

The Dormaahene urged the public to be wary of such micro-finance companies and rather partner with the known and established banks like the ADB for the safety of their funds.

Osaagyefo Agyemang Badu urged residents and businesses in the area to patronise the services of ADB adding that there is the need for them to develop the culture of savings as a financial and social security for their future.

He said one reason why some banks collapsed could be attributed to high interest rate charges that prevented credible and capable individuals and established business concerns from applying for their loans whilst those who could borrow were unable to pay back.

The Dormaahene urged the operators in the banking industry to reconsider the situation for their services to be attractive to potential customers.

Osaagyefo Agyemang Badu called on borrowers also to ensure timely repayment of loans to enable the banks to continue to be in business and advised that to secure a loan for any venture one must consciously assess the risk factors and profitability of the intended investment.

He promised on behalf of the Dormaa Traditional Council (DTC) to facilitate the efforts of local business concerns and corporate organisations in not only the Dormaa Central Municipality but also the Dormaa East and West Districts to enhance the livelihoods of the people.   

Dr John Kofi Mensah, the Managing Director (MD) of ADB, said the Bank was ready to inject capital into the poultry and allied industries and their value chains to further expand the economy of Dormaa Central and its environs.

Earlier Dr Mensah accompanied by some Management staff of the Bank paid a courtesy call on Osaagyefo Agyemng Badu at the ‘Abanpredease’ Palace to introduce himself as the new MD of the Bank make a presentation of cash and kind to him.

Dr Mensah expressed appreciation on behalf of the Board, Management and staff of the Bank to the Dormaahene for offering the new branch location to them.

He said the Bank was charting a new course to be a financial hub and a driving force behind the economy of the area.

Osaagyefo Agyemang Badu said the DTC has collaborated with the bank in diverse ways over the years and would continue to partner with it to ensure successful operations in the area.

Established in 1965, the ADB is one of the indigenous post-independent foremost Ghanaian banking institutions with 78 branches spread across the country and the Dormaa Ahenkro branch was established in 1976.