Government asked to channel common fund through rural banks

Rural banksThe Northern Regional chapter of the Association of Rural Banks (ARBs) has called on government to channel District Assemblies’ Common Funds through rural banks operating at the assemblies.

Mr Dan Dimbe Kolbilla, President of the Northern Regional chapter of ARBs, who made the call, also proposed that government as a necessity should channel funds of decentralized departments, senior high schools and even non-governmental organizations working closely with the assemblies through the rural banks in the districts.

He was speaking at the fifth Annual general meeting of Borimanga Rural Bank at Savelugu in the Northern Region to present its financial report for the 2014 financial year.

Mr Kolbilla said channeling such funds through rural banks would help address the constraints of capital and liquidity facing most rural banks and better position them to be catalysts for comprehensive rural development, channels of equitable distribution of opportunities and wealth, and support for expanded productivity in rural communities.

He called on rural banks to continuously upgrade their capacity, efficiency, sustainability as well as uphold good governance and management practices to help to contribute to the growth and development agenda of the country.

Alhaji Fusheini Seidu, Vice Chairman of the Board of Directors of Borimanga Rural Bank, who read the bank’s financial report for the 2014 financial year, said the Bank made a net profit of GH¢51,260.00 in the 2014 financial year as against a loss of GH¢80,758.00 in 2013.

Alhaji Seidu said the bank intended to open its first ever Agency in Tamale, open mobilization centers at Diare and Nanton, develop a new marketing and publicity strategy and new and demand-driven products as part of strategies to further improve its operations.

Mr James Kwesi Arko, Manager of Tamale branch of ARB Apex Bank, who read a speech on behalf of the Managing Director of ARB Apex Bank, advised rural banks to rethink their interest rate policies and review upwards the interest rates on savings to attract more deposits.

Source: GNA

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