Rural Banks urged to take advantage of reduction in interest rates

Bongo (UE), Feb 6, GNA - Rural and Community Banks (RCBs) operating in the country have been urged to take advantage of the reduction in interest rates by ARB Apex Banks to access facilities for on-lending to customers.Mr Kwadwo Aye Kusi, Managing Director of ARB Apex Bank Limited, made the call in a speech read on his behalf by the Bolgatanga Branch Manager of the Bank, Mr Zinzendorf Pascal Nkulenu, at separate functions at Zebilla and Bongo, during the Annual General Meetings (AGMs) of the Toende and Bongo Rural Banks.According to the Managing Director, the ARB Apex Bank has reduced its interest rates on its borrowing to RCBs from 20 per cent to 15 per cent.He stated that cash holdings of the various branches of the bank have been increased to enable RCBs to cash with ease, and to do so within short periods after notification.He, therefore, encouraged the management of RCBs to manage their cash needs effectively and address shortfalls.The Managing Director disclosed that the ARB Apex Bank has signed an agreement with a service provider to deploy Short Messaging System (SMS) alert, mobile to mobile transfer of money as well as support “Susu” operations.This, he noted, would not only diversify RCBs’ income stream, but would also increase their profit to ultimately maximize share holders’ value.In another development, the Board Chairman of the Toende Rural Bank at Zebilla, Right Reverend Dr Jacob Kofi Ayeebo, addressing a meeting on the bank’s total assets, said the bank increased its assets from about GH¢5,007,118 in 2011 to GH¢6,403.903 in 2012, showing a significant increase of GH¢1.396.785.He indicated that loan assets increased substantially to 42 per cent in 2012, as compared to 25.6 per cent in 2011.On the total shares of the bank, Reverend Ayeebo stated that it stood at GH¢166, 120 as against GH¢160,463 in 2011, whilst the total deposits also increased from GH¢3,928.804 to GH¢4, 934.577, an increase of GH¢1,005.77 representing 25.6 percentRev Ayeebo attributed the success story to prudent management of the bank by the Board of Directors, including support from the shareholders, staff and the Apex Bank.He noted that the bank faced challenges particularly with the global financial crisis, adding that plans were far advanced to introduce relevant products to satisfy customer needs.He stated that the bank had upgraded its mobilization centres at Binaba, Sepelga and Bolgatanga into agencies, and computerized them for improved services.Rev Ayeebo mentioned that the bank would soon introduce ATM Cards to enable its customers’ to access their monies after banking hours.He added that management of the bank intended to expand its mobilization base and intensify its search for new products, to project the bank’s growth, and appealed to shareholders to increase their shares to enable the bank to realize its dreams.GNA Read Full Story