Rural Banks urged to get involved in microfinance business

Mr Kwadwo Ayeh Kusi, the Managing Director of the ARB Apex Bank, has urged Rural and Community Banks (RCBs) to create a unique marketing environment in the microfinance business to stop the proliferation of microfinance institutions in their catchment areas.

He said the RCBs had the potential to achieve a lot in microfinance business to improve their revenue mobilization efforts to increase their capital base.

Mr Kusi said this in an address read on his behalf at the 17th Annual General Meeting (AGM) of the Odwenanoma Rural Bank at Abetifi in the Kwahu East District.

He advised the RCBs to evolve the necessary strategy to fight the competition since Microfinance was a major area for them to increase their revenue mobilization.

Mr Kusi said the banking business had become very competitive and risky with the current pace of development in Information and Communication Technology (ICT) and appealed to the bank to ensure effective risk management at all levels of the corporate structure.

Mr Kusi said to ensure that risks associated with the implementation of ICT products were reduced to the barest minimum, information security officers had been engaged by the ARB Apex Bank to ensure compliance with the laid down ICT policies.

The Vice- Chairman of the Bank, Mr. Peter Hayibor, said the bank made a net profit before task of GH¢ 233,637 last year and paid a dividend of GH ¢0.004p per share for 2013 financial year.

Assets of the bank grew from GH¢ 3,930,360 in 2011 to GH¢ 6,037,440 in 2012 whiles total deposit also went up from GH¢ 2,670,842 two years ago to ¢3,885,881 last year. Shareholders fund recorded GH¢ 726,612 in 2012 as against GH¢ 602,205 in 2011.

Mr Hayibor said the bank paid GH¢ 18,512 as income and corporate taxes to the government and its investment increased from GH¢ 1,604,492 in 2011 to GH¢ 2,284,492 in the year under review.

Source: GNA