RURAL BANKS URGED TO FACE UP TO CHALLENGES (PAGE 47)

THE Managing Director of the Association of Rural Banks APEX Bank (ARAB APEX Bank) Limited, Mr Eric Osei-Bonsu, has called for collective efforts by rural banks to fight the emerging competition in the banking sector.
Mr Osei-Bonsu has, therefore, urged the rural banks to use their ongoing 7th managers conference at the Elmina Beach Resort to map out strategies to meet their challenges.
He said with the removal of barriers to those who hold universal banking licences by the Bank of Ghana (BoG), rural community banks (RCBs) would no longer be protected against what he described as intrusion by the big commercial banks.
He asked them to put in their maximum efforts to provide better services for their customers in order not to lose them to ‘invading’ banks.
He said efforts were afoot for the RCBs to procure the necessary devices to enable them participate in the e-zwich system.
Mr Osei-Bonsu said the ARB had presented a paper to seek government support in terms of re-capitalisation drive and that it was also holding discussions with other investors who were development-oriented and might consider investiting in the bank.
He said the RCBs expected the BoG to review upwards loan ceiling to enable them meet current business demands and also ensure that they competed favourably with the big commercial banks.
He advised them to take the requisite measures such as improved services, computerisation, reduction in grant, removal of bottlenecks, to meet the challenges ahead.
In his welcoming address, the President of the Central Regional Chapter of the ARB, Mr Kweku Acquaah, proposed that the banks should set aside 10 per cent of their annual profits to lend to peasant farmers as part of their social responsiblility.
This, he said, would support such farmers to boost production for domestic consumption.
The Central Regional Minister, Nana Ato Arthur, asked the RCBs to develop new and relevant products, increase their capital base and to be able to underwrite bigger business and support commercial agriculture as was done in other countries.
He said support for agriculture had become necessary.