The Managing Director of the Association of Rural Banks (ARB) Apex Bank Limited, Kwadwo Aye Kusi, has asked Rural and Community Banks (RCB) to comply with a number of regulatory, statutory and legal requirements.
He said these include the Bank of Ghana and ARB Apex Bank notices and circulars, the Valued Added Tax, Social Security and National Insurance Trust and Pensions, as well as the Companies Act stipulations.
Mr. Kusi was speaking at the bank’s 31st Annual General Meeting (AGM) at Wassa Akropong in the Western Region.
The ARB Apex Bank is a mini Central Bank in Ghana for the Rural/ Community Banks (RCBs) financed mainly through the Rural Financial Services Project (RFSP), which is a Government of Ghana project to holistically address the operational bottlenecks of the rural financial sector with the aim of broadening and deepening financial intermediation in the rural areas.
“I encourage the board and management to maintain a high compliance environment in respect of these requirements,” he said.
Mr. Kusi said the board of rural banks had the responsibility to initiate organisational and operational transformation especially in the areas of ICT, risk management, compliance, effective deposit mobilisation, quality loan book and cost control.
He advised the board of the Amenfiman Rural Bank to put in place pragmatic programmes and policies to sustain the bank.
Mr. Kusi said the banking business had become very competitive and risky, and there was the need for effective risk management to minimise risk.
He advised boards of RCBs to institute risk management policies to identify, assess, monitor and control risks.
Dr. Toni Aubynn, Chairman of Amenfiman Rural Bank said the bank recorded a profit of GH¢4,620,187 in 2014, as against GH¢4,020,732 in 2013.
He said the 15 per cent growth in profit was commendable, because of the continuous depreciation of the cedi, and price hikes in fuel, utilities and general increases in the cost of doing business.
Dr. Aubynn said deposits grew by 34 per cent from GH¢44,099,290 in 2013 to GH¢59,100,000 in 2014 due to innovative products and service delivery.
He said total assets also grew by 34 per cent from GH¢55,463,363 in 2013 to GH¢73,177,732 in 2014.
Dr. Aubynn said total income went up from GH¢10,310,319 in 2013 to GH¢15,370,917 in 2014.