Mr Kojo Mattah, the Managing Director, ARB Apex Bank, has asked rural Banks to enter into partnership arrangements to get the mutual support to keep them in business.
He said the partnership arrangement would enable the banks to meet the Minimum Capital and other regulatory requirements, and change the operational direction of the banks to avoid liquidation.
This was contained in a speech read by George Osei Annor, Cape Coast Branch Manager of ARB APEX Bank, on behalf of Mr Matta during the Extra-Ordinary Shareholders Meeting of Akyempim Rural Bank Limited at Gomoa Dawurampong.
Mr Matta said the regulatory regime was tight to help check the establishment of banks, adding that Act 930 and Act 931 have been established to sanitize and strengthen the banking industry.
According to him, they were severe penalties for non-compliance and the banks needed to meet the requirements of the deposit protection scheme.
He said the partnership consideration between Amenfiman Rural Bank and Akyempim Rural Bank was welcome news to the rural community bank fraternity.
He said capital injection to keep liquidity in general, borrowing capacity, purchase of new fixed assets to replace obsolete ones, increase in productivity and engagement of high calibre employees were some of the benefits of a partnership.
It is in this regard that ARB Apex Bank is encouraging the arrangement for the two banks to see the “light of day”, the Managing Director added.
Mr Daniel Ohene Owusu, the National President, Association of Rural Banks-Ghana, applauded the pioneering roles played by illustrious natives of Akyempim Traditional Area who championed the establishment of the Rural Bank.
In a speech read on his behalf by Mrs. Comfort Owusu, General Executive Director of the Association, Mr. Owusu admonished the Board, Management and staff of Akyempim Rural Bank to be abreast with the existing statutes and regulatory directives.
They included the bank’s specialized deposit-taking institutions, Companies, Anti-money laundering, Credit reporting, lenders and borrowers Acts, Bank of Ghana guide for reporting institutions and accounting manual and ARB Apex Bank Legislative Instrument (L.I 1825), among others.
He said the adherence to the law and the directives would help to instil discipline and decorum into the operations of the bank and to help organize on-the-job and in-service training programmes on basic operational issues to sharpen the knowledge and skills of stakeholders.
“I will also expect the Management of Amenfiman Rural Bank’s oversight team to blend their operational culture with the exiting culture of Akyempim Rural Bank,” he said.
According to him, rural banks are recognized as the most reliable financial institution to prosecute governments financial inclusion agenda due to their presence in the deprived communities in the country.
The Association of Rural Banks-Ghana will continue to strengthen its advocacy role to create operational relevance, enhance the engine of Rural and Community Banks, preserve collaboration with ARB APEX BANK and stakeholders in the banking industry to improve operational efficiency, he added.