According to the Apex Bank, it had become imperative for RCBs to pay maximum attention to good treasury management practices, especially in the current challenging economic environment so that the liquidity needs shall be met.
Mr. Kwadwo Adjei Kusi, Managing Director of Apex Bank, said these in a speech read on his behalf at the 10th annual general meeting of Capital Rural at Abesim near Sunyani.
He said the Bank of Ghana as part of its regulatory requirements had prescribed the minimum liquid reserve assets that all RCBs must hold on to.
These requirements he noted included 8 per cent primary reserves, 5 per cent ARB Apex reserves and 30 per cent secondary reserves.
“Profitability is essential for banks’ long term survival, but for future survival of banks they need liquidity,” he stated.
Mr. Kusi expressed concern about the growing level of non-performing loans among RCBs.
The trend he explained was as a result of weak credit management practices in the banks.
He therefore, advised banks to strengthen their credit management structures to make their loan books healthy and profitable.
Dr. Edward Yaw Peprah-Agyemang, Board Chairman of Capital Rural Bank announced that in the 2014 fiscal year, the bank recorded modest gains in almost all the financial performance indicators.
He said the total income grew by 17 per cent from GH¢2,570,718 in 2013 to GH¢3,010,754 in 2014.
He said the net profit saw a marginal growth GH¢593,083 in 2013 to GH¢600,294 in 2014, representing an increase of 1 per cent.
From Daniel Dzirasah,Abesim