Institute Risk Management Policies — RCBs Told



blay pixThe Managing Director of ARB APEX Bank Limited, Mr. Kwadwo Aye Kusi, has advised rural and community banks (RCBs) to institute risk management policies to effectively deal with challenges and risks associated with modern banking.

He said: “Banking has become competitive and risky especially with the current pace of development in Information Communication Technology (ICT), there is therefore, the need for policies that would help identify, assess, monitor and control operational and credit risks among others.”

Mr. Kusi gave the advice at the weekend at New Ningo during the 2012 annual general meeting of the Dangme Rural Bank.

He said the ARB Apex Bank would soon institute an ICT security policy as part of measures to ensure that risks associated with the implementation of ICT products were reduced to the minimum, adding that three persons had been employed recently to commence work on information security for the RCBs network.

Mr. Kusi urged RCBs to deepen their micro finance business and promote it to improve their overall results in order to lead the competition.

He called for the continuous training of their staff to enable them to develop skills and competences to confront challenges including providing financial services to the unbanked and under-banked in their catchment areas and to control the use of funds and limit default risk.

Mr. Kusi said the ARB Apex Bank was ready to commence branchless banking after it procured the Temenos Arc mobile platform, which would allow RCBs to offer financial services outside traditional bank premises by using delivery channels like retail agents, mobile phone among others to substantially increase financial service outreach to the unbanked communities.

He commended Dangme Rural Bank for its impressive performance last year and hoped that it would continue to chalk greater successes in the years ahead.

The Board Chairman of Dangme Rural Bank, Mr. Samuel N. Odonkor, said the bank made a profit before tax of GH¢192,408 as compared to GH¢4,776 the previous year.

He however, bemoaned the high default rate in loans repayment and gave the assurance that the bank had contracted a debt collection company to collect all overdue debts.

The bank proposed an amount of GH¢95,256 as dividend to be paid at the rate of GH¢0.002 per share. From Godfred Gibbah Blay,
New Ningo

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