Rural banks need risk management to survive in urban environment – Osei-Bonsu
Rural and Community Banks (RCB) survival in an urban environment depend largely on their ability to brace themselves to minimize risks, Mr Eric Osei-Bonsu, Managing Director of ARB Apex Bank has said.
He said RCBs operations in urban environments are likely to take on board more and bigger risks that require effective risk management through internal control mechanisms and prudent financial management to be competitive.
Mr Osei-Bonsu, who said this on Monday when he cut the tape to inaugurate a new branch of the Abokobi Area Rural Bank Limited at the Adentan, charged board members of the bank therefore to brace themselves to the challenges of modern banking practice.
He lauded the Abokobi Area bank for its achievements over the past 25 years and said its new branch at Adentan would further widen and deepen rural financial intermediation in the country.
He said Adentan is a new Municipality and the bank would be contributing significantly towards its socio-economic development but, which would require more prudent banking policies and innovative approaches to mobilize more savings for investments.
Mr Osei-Bonsu said the key to rural development and poverty alleviation in the country reduction was to financially empower the rural population.
He told the Abokobi bank that the new branch should act as an impetus to spur them on to break even more frontiers in future adding “I will urge you to encourage both existing and prospective shareholders to acquire more shares to strengthen the capital base of the bank to cushion it against any unexpected shock.”
Welcoming the guests to inaugurate the branch, Mrs Matilda Bruce-Arthur, Senior Manager of the Abokobi Area Rural Bank assured the public that the 25-year old bank is fully fledged to spread its tentacles and make its services more customer-friendly.
She said the bank now depends on quality customer service and added, “We are poised to do business with the people of Adentan and its environs – churches, schools, traders and all micro-base.”
With just GH¢5.0, Mrs Bruce-Arthur said, new customers could open both savings and current accounts and enjoy attractive interest rates as well as a wide variety of products tailored to meet their needs.
Nii Afutu Brempong III, Board Chairman of the bank assured the people of Adentan that the Abokobi bank has many special packages for both individual and corporate bodies in addition to modern fixtures to motivate customers.
“We have assisted many table-top traders and similar unnoticed customers to reach greater heights,” he said.
Source: GNA