21-01-13
Rural Banking Institutions
across the country have been challenged to initiate internal control mechanisms
to enable them add value and efficiency to their banking operations. This will
in turn minimize the occurrence of irregularities such as fraud and other
malpractices like embezzlement of funds by staff, which appears to have
permeated the rural banking industry in recent times. In a speech read for him
at the 22nd Annual General Meeting of Naara Rural Bank Limited in
Navrongo, the Managing Director of ARB APEX Bank Limited, Kodjo Aye Kusi,
emphasized the urgent need for smaller banking institutions to prioritize and
strengthen their internal controls to ensure adequate and effective measures to
enhance standards. Adherence he further explained will help improve performance
for the attainment of their set objectives. He stated that modern business of
banking has become very competitive and risky, hence the urgency for banking
institutions to adapt to modern trends. Mr. Aye Kusi however advised boards of
smaller banking institutions to put in place risk management policies required
to identify and mitigate the vulnerability to which the banks may be
exposed. He also challenged them to
sharpen their skills in ICT to ensure that customer service and staff training
are considered for the survival of rural banks. Presenting the Bank’s general
performance for the period 2010/2011, the Board Chairman of Naara Rural Bank,
Simple John Aniba announced that the bank since its inception in July 1981 had
undergone tremendous transformation, since its performance indicators shows
positive trends in the area of loan delivery and recovery as well as net profit
before tax among others. The bank, he revealed chalked an increase of 145.18
percent on Net Profit before tax, whilst loans and advances recorded 63.55 per
cent increase for the period under deliberation. Apart from investment –short term that
recorded a decrease of 25 .55 percent, all other areas in terms of net worth
and deposit. Despite the gains made in some operational sectors, Mr. Aniba was
worried about the rate of loan recovery which, he noted was below expectation
as a result of delays in payment, especially contract loans. He said the
challenge due to the use of legal procedures and monitoring by field officers,
resulted in the recovery of some monies from defaulters. Moreover with prudent
managerial skills and strategies coupled with collaboration from stakeholders,
worrying concerns of the bank are given the needed attention. Mr. Aniba showed
gratitude to stakeholders including ARB APEX Bank, the Millennium Challenge
Account (MCA) and the Rural and Community Bank-Inter Connectivity Project for
the successful execution of the computerization of the bank’s operation and
called for more support in other areas. He pledged that
efforts would be intensified to put the bank on a high pedestal.
GBC
END
IA/
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