Rethink interest rate policies – Apex Bank

Rural and Community Banks (RCBs) have been urged to rethink their interest rates – review the rates on savings to help raise more deposits.

Mr. Kwadwo Aye Kusi Managing Director of ARB Apex Bank, said this was vital to enable them to achieve higher deposit balances.

Available statistics show that savings account balances represent an average of 60 per cent of rural banking deposits with the per annum interest rate on these balances averaging between four and six per cent.

Mr. Aye Kusi said this was a compelling reason to increase the rate – to make it more attractive.

He said this in an address read for him at the 27th annual general meeting (AGM) of shareholders of the Sekyere Rural Bank Limited held at Jamasi in the Sekyere South District.

He reminded them that the banking business had become increasingly competitive and risky and asked that they took steps to ensure effective risk management.

They should institute risk management policy to identify, assess, monitor and control risks, he added.

Mr. Kusi also highlighted the need to put more value on good customer care to attract new customers and maintain existing ones.

“There should be re-orientation of all staff to embrace excellence in customer services as a culture and not as a tool for doing business.”

Mr. Joseph Sarfo-Adjei, the Board Chairman, announced that profit after tax on its operation, grew from GHȼ1,092,025.34 to GHȼ1,111,856.81, last year.

At the same time, total assets hit GHȼ52,055,991.45 from the year 2014 total of GHȼ43,554,757.03.

He told the owners of the bank that its deposits also shot up from GH¢34,955,334.00 to GH¢44,750,041.00 during the period.

He said support to businesses by way of credit grew by 14.9 per cent with investment in government securities and other financial instruments expanding by 29 per cent.

Source: GNA