Rural Banks encouraged to adapt to sound financial management

The Bolgatanga Branch Manager of ARB Apex Bank, Reuben Adamtey has charged the various Rural Banks to put in place prudent financial management and decisions in their day-to-day operations in order to stay in business. According to him, the banking environment is becoming more and more competitive, hence the need for rural banks to come up with innovative products, render quality service to their prospective customers and moreover, put in place measures to ensure that unscrupulous people do not defraud the bank ,especially in the handling of current codeline cheque clearing. Internal control mechanisms, he indicated should also be strengthened to help sustain the banks. Speaking to Radio Ghana at Bawku, Mr. Adamtey said though the establishment of rural banks has contributed in shaping the lives of the citizenry, particularly the rural poor, the sector is still faced with numerous challenges including poor financial intermediation, weak management and staff capacity as well as low capitalization among others . This unfortunate trend, he noted, contributed to lack of public confidence in rural banks, thus compelling the Bank of Ghana to close as many as 23 distressed rural banks across the country. The closure of the banks he disclosed led to the creation of the ARB Apex Bank, which then became the mini central bank for the rural banks. Mr. Adamtey was of the view that the establishment of the ARB Apex Bank has done so much for the survival of rural banks in areas of products development, training cheque clearing, specie supply and performance monitoring. ARB Apex Bank, Mr. Adamtey added offers key services to rural banks and has created a unique opportunities for individuals, particularly rural banks to access loans to extend and improve upon their activities. He therefore called on the rural banks not to hesitate to call on ARB Apex Bank offices in times of difficulties and clarifications since their door is always opened to their valued stakeholders. Touching on loan default, Mr. Adamtey reminded defaulters to ensure prompt payment of loans to enable the bank grant loan to other prospective borrowers. He also entreated the banks to ensure that loans are well appraised, monitored and evaluated to avoid the high rates of defaults. Beneficiary communities, he emphasized should also reciprocate the kind gesture of the rural banks by continuously conducting business with them for the purpose of sustainability.
GBC END IA/