Channel statutory funds through rural banks – Aubynn
The Chairman of the Board of Directors of the Amenfiman Rural Bank Limited at Wassa Akropong, who is also the CEO of Ghana Minerals Commission, Dr Tonni Aubynn, has appealed to the government to consider channelling government statutory funds such as the District Assemblies Common Fund through rural banks in the country.
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According to him, over the years, rural and community banks (RCBs) have played an important role in the rural financial intermediation and also contributed very significantly to local development in Ghana. He indicated that RCBs were usually the first port of call for support for any community project.
Dr Aubynn made the appeal during the inauguration of the first phase of the business complex project by Amenfiman Rural Bank Limited at Asankrangwa in the Wassa Amenfi West District in the Western Region.
He also suggested to the Bank of Ghana to consider categorising RCBs into various tiers based on a criteria such as capital, liquidity, quality of board and management, proper risk management and good corporate governance, among other factors, so that RCBs whose performances rise above satisfactory could be allowed to operate outside their geographic location.
The office complex was built at a cost of GH¢1.3 million with the primary purpose to ease the congestion at the banking hall of the old branch at the centre of Asankrangwa.
The second phase, which is expected to be completed by the end of this year, is a 30-room shopping mall facility which will be made available to the bank’s valued customers.
The inauguration of the Asankrangwa High Street branch brings to 11 the number of branches currently being operated by the bank. These are Akropong and Akropong High Street, Bawdie, Dunkwa on Offin in the Central Region and Tarkwa Tamso. The rest are Wassa Akropong and Wassa Akropong High Street, Enchi and Prestea.
Amenfiman Rural Bank continues to support businesses and families and economic activities in general in its operational areas through loans and advances they offer to customers. In 2014, the bank granted loans to the tune of GH¢37.6 million. It also has an impressive recovery rate of 95 per cent and has a plan to exceed the figure in 2015.
In an address, the Chief Executive Officer of the bank, Alex Kojo Asmah, announced the tremendous progress the bank had made for the past three years.
He attributed the growth of the bank to the contributions of its board of directors and the effective management and hard work of staff and its loyal customers.
He mentioned that because of the very “solid pillars” the bank had been operating on, its total deposit increased from GH¢15million in 2010 to GH¢ 59million as of the end of 2014, with loans and advances to businessmen and women, particularly in the area of petty trading and personal loans, totalling GH¢37.6 million in 2014 alone.
The bank’s profit margin has increased very significantly over the years. The bank made a profit of GH¢450,000 in 2010 but posted GH¢ 4.5 million in 2014.
The bank was adjudged to have achieved the highest rate of deposit mobilisation and second most profitable rural bank in Ghana by the Association of Rural Banks at the maiden Rural & Community Bank Excellence Award held recently in Tamale.