THE Managing Director of the ARB APEX Bank, Mr Eric Osei-Bonsu, has noted that for rural banks to continue to perform the crucial function of rural financial intermediation, they will need continuous support from stakeholders, regulatory authorities, customers and the general public.
He said rural banks had more to do by way of organisational restructuring, effective credit administration, cost control and reduction to meet the challenges of the changing competitive business environment that would lead to economic and social development and transformation.
This was contained in an address read on his behalf by Mr E. Y. Sarpong, the Head of Banking Operations of the ARB APEX Bank at the 18th annual general stakeholders meeting of the Adanse Rural Bank at Fomena in the Adanse North District of the Ashanti Region at the weekend.
Despite the challenging economic environment, the bank recorded a 21.43 per cent increase in profit and declared a dividend of GH¢0.017 per ordinary share, against GH¢0.014 for the 2006 financial year.
Mr Osei-Bonsu said for rural and community banks to improve upon their operations, internal control systems should be tightened.
He also advised them to create internal audit units to help oversee the implementation of their systems and controls and report directly to the boards or board sub-committees.
Presenting his report and financial statement, Mr Ahmed Kwame Boakye, the Chairman of the Board of Directors of the bank, said at the beginning of 2007 inflation stood at 10.99 per cent but it started an upward movement and ended the year at 12.7 per cent as a result of high crude oil prices, increases in tariffs of utilities and food prices.
He said with the vulnerability of women and their exclusion from credit facilitation in mind, the bank sought to empower them by granting 3,970 women credit to the tune of GH¢1803.055
Nana Sarfo Agyeman, III, the acting President of the Adansi Traditional Council and chairman for the meeting, urged the management of the bank to seek ways of strengthening and developing its operations.
He appealed to the ARB APEX Bank to help heal the distressed Atobiase Rural Bank to enable it to bounce back. He also urged the general public not to keep their money on ceilings and under mattresses but save it with the Adanse Rural Bank.
